“Bull market distribution has begun”-5 things worth paying attention to in Bitcoin this week

Bitcoin (Bitcoin) Start a new week, because the bulls saved the day-and the week-all-time highs at the last minute.

The one-week horizontal BTC price trend just ended at the close of the week, and Bitcoin rebounded to $66,000.

This is a classic move that has become very familiar in recent weeks, and now attention is again focused on bullish results.

Since Wall Street has not yet opened the market, Monday has not yet set the tone for the third week of “Moonvember”, and the target price at the end of the month is still close to $100,000.

Can Bitcoin get there? Cointelegraph studied five factors that may help shape the trajectory of BTC prices in the coming days.

Weekly closing leaves no room for the bear market

For those who are worried about what will happen when the market closes every week on Sunday, there is no need-Bitcoin does not disappoint.

After a sideways consolidation for most of the week, BTC/USD rose in a classic style, setting a new historical high weekly candle chart, bringing it to $65,500.

The $1,000 gain did appear in the last hour, which is a behavioral feature in recent weeks.

Therefore, the weekly closing price of Bitcoin is higher than it was previously considered to be a trend for more than a month Important test Comprehensive strength.

For the popular analyst TechDev, there is another reason why the closing is notable, which is to be above the 1.618 Fibonacci level, thus replicating the action that served as a springboard during the bull market in 2013 and 2017.

“Are you ready for everything that is coming? I personally don’t think Bitcoin will be different this time,” he added in a statement. Separate Fibonacci pillars.

At the time of writing, the trading price of BTC/USD was just below $66,000, having briefly touched a high in the area overnight.

Others think the Taproot soft fork on Sunday deploy It has not yet received full attention. As Cointelegraph famousAfter major upgrades, prices have also risen sharply, just like Segregated Witness (“SegWit”) in 2017.

Charles Edwards, chief executive of the investment company Capriole, said: “The market has not yet priced a massive Bitcoin Taproot upgrade.” wrote.

$135,000 “still in play”

Tell me what you think about the end of the month of the analyst PlanB”The worst situation“A series of Bitcoin price predictions-he insisted on his estimates.

PlanB has correctly guessed the monthly closing price of BTC for almost three consecutive months, and now says that $98,000 by December 1 and $135,000 by January 1, 2022 are still achievable goals.

He is not alone-just like Cointelegraph Report, Multiple sources are considering moving towards at least $85,000 in the coming weeks.

Zooming out further, PlanB’s stock-flow model, along with other studies, shows the cyclical nature of Bitcoin-even before 2013.

However, a prediction last week stated that although Bitcoin will reach a huge amount of US$250,000 in January, it will eventually refute One of the inventory-to-flow models.

“Bull market distribution has begun”

Will it be the beginning of the end of this cycle of Bitcoin bull market?

Looking at what the long-term holders (LTH) are doing, it seems that Bitcoin has entered its final-but most volatile-bullish chapter.

Data from the on-chain analytics company Glassnode highlight Analyst William Clement said that LTH investors have stopped net holdings and are now divesting tokens.

As a characteristic of the top of the bull market, this “selling strength” marked the first net decrease in LTH holdings since April, when BTC/USD hit a high of $64,900 and maintained a six-month cap.

“Long-term holders buy BTC when it is weak and sell it when it is strong,” Clement commented.

“We have just obtained the first red chart of the change in LTH net position in 6 months, indicating that the bull market distribution has begun.”

Bitcoin LTH position change chart.Source: William Clement/Twitter

Last time, in the fourth quarter of 2020, LTH started selling before the sharp rise in Bitcoin prices, the distribution peaked, and then fell before the all-time high of $64,900 was achieved.

Hash rate is back to a record high

One aspect of Bitcoin that really hit a record high this week is the hash rate.

After recovering quickly but nevertheless from a crash five months ago, the fundamentals of the core network are now measuring its performance from late April to early May.

Based on data from real-time monitoring resources Pool statistics, Excluding the peaks and valleys in the original data, the hash rate is about 168 exahashes per second (EH/s).

The original Bitcoin hash rate data chart. Source: MiningPoolStats

The attached chart shows the degree of progress made since the miners began to collectively move out of China.

Although the hash rate describing the computing power dedicated to mining can only be estimated rather than accurately measured, the indicator is now beginning to set foot in the unknown for the first time in nearly half a year.

As Cointelegraph ReportDifficulty, arguably the most important indicator of Bitcoin’s core strength, continues to return to historical highs.

Added on Sunday Another 4.7% When it comes to statistics, it also marks the ninth consecutive increase in difficulty.

“Signs of a bubble”

Moving away from Bitcoin, the traditional markets are beginning to feel uneasy—not just investors.

related: The 5 most noteworthy cryptocurrencies this week: BTC, LTC, LINK, VET, AXS

At a meeting last week, the former governor of the Reserve Bank of India, Raghuram Rajan, warned of excessive stock market growth.

“There are clear signs of a bubble,” he said of Nomura-Wolf’s basket of popular U.S. stocks. lead “Financial Times” and other media reports.

During a period of rapid price growth, it sounds more like Bitcoin, with a large volume of options trading – and the leverage that comes with it.

The British “Financial Times” also quoted investment manager Neuberger Berman Chief Investment Officer Erik Knutzen as saying: “Everything seems crazy, there are bubbles everywhere, there are bubbles everywhere.”

“This has become a cliché, but we are indeed in uncharted territory, very unusual territory.”

Although November has traditionally been a strong month for the traditional financial and cryptocurrency markets, this tone has heightened people’s suspicions about the “rising only” nature of stocks.

For Bitcoiners, the problem revolves around the overall correlation between the two-although Bitcoin has gone out of its own accord in recent months, BTC may still be affected by sudden changes in sentiment elsewhere.

An example is Tesla, which Step by step Last week, Bitcoin emerged with the support of CEO Elon Musk’s sale of 10% of the shares.