Bitcoin is embarking on a new week, maintaining its position near its highest levels in the past 18 months.
The cryptocurrency’s price action surged above $38,000 last week, but it has since been trapped within a “micro-range,” leaving traders uncertain about the next move.
The pressing question on everyone’s mind is whether a deeper retracement is in store or if Bitcoin will continue its ascent to reach $40,000, potentially leaving doubters behind.
In the coming days, several potential catalysts could determine the direction of Bitcoin’s trend, and there are indications that the market is primed for a boost.
Volatility is expected to increase with the monthly close on the horizon, but before that, a series of macroeconomic events could bring unexpected price action.
The monthly close holds significant importance for day traders, with Bitcoin currently at a critical juncture.
Untested liquidity levels on the downside and resistance around the $40,000 mark have created a stubborn daily trading range.
Bulls and bears have struggled to break free from this narrow corridor, with even new higher highs being short-lived.
As of the latest weekly close, Bitcoin experienced a brief drop to $37,100 before recovering.
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Traders are now eagerly awaiting bid momentum to return, with key levels at $37,000 and $38,000 to watch closely.
The monthly close approaches, and Bitcoin has seen a 7.8% increase month-to-date in November 2023, which is considered average compared to previous years.
In addition to the monthly close, Bitcoin traders are also anticipating a week filled with macroeconomic events.
The United States Federal Reserve will receive crucial inflation data that will influence its interest rate policy decisions in the coming month.
Fed Chair Jerome Powell is set to speak on December 1, following comments from other senior Fed officials.
The GBTC (Grayscale Bitcoin Trust) is nearing parity with its underlying asset pair, BTC/USD, indicating a positive shift in market sentiment.
The fund’s resurgence is seen as a sign of growing institutional interest in Bitcoin, particularly if the U.S. approves its first spot price exchange-traded fund (ETF).
Bitcoin miners are deploying record processing power to the network in anticipation of the upcoming block subsidy halving in April 2024.
The hash rate, a measure of this deployment, recently surpassed 500 exahashes per second, a significant milestone.
Meanwhile, BTC exchange balances are declining once again, with major exchanges holding the lowest amount of BTC since April 2018, driven in part by recent regulatory actions and hacks affecting some exchanges.
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