Bitcoin price continues to climb
Bitcoin (BTC) is starting Thanksgiving week on a positive note, with the cryptocurrency's price hovering near 18-month highs. Despite slower gains in recent weeks, BTC/USD is up 7% month-to-date. This bullish momentum has prompted long-term holders to hold onto their coins, with over 70% of BTC supply remaining dormant for a year or more.
Bitcoin traders remain optimistic
Bitcoin traders are maintaining their optimism despite the recent retracement in price. While BTC briefly reached $37,500 before falling back to around $37,000, traders believe that persistent demand could push the price higher. Some market participants expect rangebound trading in the short term, with resistance at $38,000 and support at $33,000-34,500.
Macroeconomic data and Fed minutes on the horizon
This week, traders will be watching for macroeconomic data releases, including jobless claims, which have the potential to impact Bitcoin's short-term momentum. Additionally, the release of the Federal Reserve's meeting minutes will provide further insights into the central bank's interest rate decision. Market consensus indicates that interest rates will remain unchanged.
Bitcoin mining boom raises concerns
Bitcoin's network fundamentals, including hash rate and mining difficulty, continue to reach all-time highs. However, some analysts are cautious, noting that previous highs in hash rate have often been followed by a price downturn. The next automated difficulty readjustment is scheduled for November 25th and is expected to have a modest impact on difficulty.
Bitcoin dominance fuels hopes of a bull market
Bitcoin's dominance in the cryptocurrency market remains strong, accounting for around 52.5% of the total market cap. While altcoins have seen a retracement in price, Bitcoin's dominance surge indicates the early stages of a crypto bull market. Traders expect Bitcoin to lead the market, with smaller tokens following suit.
Supply dormancy reaches record levels
Long-term holders of Bitcoin continue to show strong conviction, with over 70% of the supply remaining dormant for at least a year. This indicates a reluctance among investors to sell or transfer their coins, even as the price has increased by 139% over the past year. Some analysts believe that the area below $40,000 could be a key profit-taking level for long-term holders.
