Bitcoin Thanksgiving Gift, Why BTC Heads For Fresh Rally
November 25 2021 - 01:19PM
NEWSBTC
Bitcoin has been trading on the green side this Thanksgiving
morning with a 4.1% profit in the 24-hour chart. Approaching a
critical resistance level, BTC’s price stands at $59,042 and could
see more appreciation in the short if it manages to flip $60,000 to
support. Bitcoin has been rangebound for the past week with low
volatility for the most part as the price was rejected close to
$60,000 on Monday. According to QCP Capital, an institutional
investor is most likely responsible for the price action and
suppression of any serious momentum on BTC’s price rally attempts.
Related Reading | TA: Bitcoin Breaking This Confluence
Resistance Could Spark Recovery This institutional investor has
been increasing selling pressure when Bitcoin attempts to reclaim
previous highs, the firm noted. QCP Capital suspects this player or
players could be pushing BTC’s price down to place bearish put
options on Bitcoin and Ethereum. In that sense, the general
sentiment in the market has taken a dive as NewsBTC reported. Most
operators have gone into fear mode but could enter extreme fear if
the selling pressure causes Bitcoin to break further down. QCP
Capital added: We are betting that the market will consolidate
instead of breaking lower. So we are taking the opportunity to
short vols in BTC and ETH as well as take profit on our downside
risk reversal position and flip to a topside skew. As of press
time, Bitcoin’s current rally into $60,000 seems fairly strong with
support in the $55,000 to $58,500 area. According to the In/Out of
the Money Around Price metric, over 3 million addresses bought 2
million BTC on these levels. #Bitcoin on stable support!
💪@intotheblock's IOMAP shows that more than 3.41M addresses
acquired nearly 2M $BTC between $55,000 and $58,500. Such a massive
demand barrier is more significant than the few supply walls ahead,
so #BTC downside potential appears to be capped.
pic.twitter.com/uwQOpprsAA — Ali Martinez (@ali_charts) November
25, 2021 A Great Capitulation Before A New Bitcoin Rally? Jarvis
Labs’ analyst Ben Lilly recently tried to answer the question that
seems to be in every trader and investors’ mouth: has the Bitcoin
bull-run ended? As seen below, BTC’s price bullish momentum is
valid as long as it stays above $43,000. In support of the bullish
thesis, Jarvis Labs records heavy institutional demand for Bitcoin.
Historically when BTC sees these levels of an accumulation from
large investors, future price action experiences a strong push to
the upside. Conversely, when BTC sees low demand from whales, it
suggests a cycle has been reached. Ben Lilly added on the whale
accumulation pattern for the past week: (…) whales are starting to
step in. And this change will likely be reflected on the 30-day
chart in a couple weeks. However, Jarvis Labs has been warning
about the behavior in the Bitcoin derivatives sector during
November. Funding rates across this sector have stayed highly
positive and although they have decreased with the recent trend to
the downside, they still suggest the market is overheated. Related
Reading | TA: Bitcoin Continues To Struggle, Why BTC Could Dive
Below $55K Therefore, another retest of the lows and a full market
reset seems to still be in the cards. This could be the final
sacrifice for Bitcoin to reach a new all-time high in 2021.
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