Bitcoin Thanksgiving Gift, Why BTC Heads For Fresh Rally

Bitcoin trades on the positive side today, thanks to a 4.1% profit recorded in the 24-hour charts. 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.

The 4-hour chart shows BTC trending to the upside. Source: BTCUSD Tradeview

Bitcoin’s volatility has been low for most of the week, with the price falling to as low as $60,000 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.

TA: Bitcoin’s Breaking of the Confluence Resistance could Spark Recovery| TA: Bitcoin Breaking This Confluence Resistance Could Spark Recovery

According to the firm, this institutional investor has increased selling pressure whenever Bitcoin attempts to return past highs. QCP Capital suspects this player or players could be pushing BTC’s price down to place bearish put options on Bitcoin and Ethereum.

NewsBTC stated that this is a sign of market sentiment. While most traders have entered fear mode, some could become extremely fearful if Bitcoin’s selling pressure continues to drop. QCP Capital added:

The market is expected to stabilize rather than fall lower. Therefore, we will take the opportunity to short BTC/ETH and profit on our downside-risk reversal position to 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. These levels were reached by more than 3 million people according to In/Out data from the Money Around Price.

Is This A Wonderful Capitulation For 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.

Jarvis Labs via Ben Lilly

Jarvis Labs has recorded a strong institutional demand for Bitcoin to support the bullish thesis. This is a historical trend that shows future price action to be stronger when BTC experiences large-scale accumulation from large investors.

Jarvis Labs via Ben Lilly

In contrast, low whale demand suggests that a cycle is in place when BTC has seen lower than average BTC usage. Ben Lilly also shared the pattern of whale accumulation over the last week.

(…) whales are starting to step in. In a matter of weeks, this will be evident on the 30-day chart.

Jarvis Labs warned about November’s behavior in Bitcoin derivatives. This sector has remained positive in terms of funding rates, even though they declined with the recent downtrend. However they continue to suggest that this market is still overheated.

Similar Reading| Bitcoin continues to struggle, why BTC could dive below $55K

A retest at the bottom and market reset seem to be possible. It could prove to be Bitcoin’s final act of sacrifice in order to hit a new record high in 2021.

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