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BTC price hits $57K five-month high — 5 things to watch in BTC this week

Bitcoin price action beats last week’s local high to edge ever closer into final resistance before all-time highs of $64,500.

Bitcoin (BTC) is in top form — almost literally — as it heads into a new week less than 15% from all-time highs.

A classic cocktail of factors has laid the foundation for a Q4 finale, which analysts are now confidently comparing to the bull runs of 2013 and 2017.

Decoupling from macro market movements and the United States dollar, Bitcoin is once again looking like the gold alternative that investors want — all while altcoins slip away.

With “Uptober” still only in its second full week, Cointelegraph takes a look at what might lie in store for BTC price action over the coming days.

Altcoins lag ahead of “Bitcoin season”

Things are looking rosy as the week begins for Bitcoin traders — last week’s four-month highs are back and beaten.

With the exception of a curious anomaly on exchange Bitstamp, which saw a momentary wick down to $51,000, a quiet weekend preserved previous gains.

Now seemingly lining up an attack on final resistance below all-time highs of $64,500, BTC price action is delighting market participants.

There’s a further aspect behind Bitcoin’s strength, however — one which could preserve further upside in the short term.

Altcoins are underperforming, leading to predictions of a “Bitcoin season” before some form of alt season reemerges later on. As Cointelegraph reported, this might not be until 2022.

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The situation is particularly visible in Ether (ETH), the largest altcoin by market capitalization, now at its lowest against BTC since the start of August.

“ETH/BTC breaking down, while Bitcoin consolidating,” Cointelegraph contributor Michaël van de Poppe summarized late Sunday.

Overlaying 2021 price performance onto that from 2017 likewise produces uncanny similarities.

All these findings, from popular trading account TechDev, point to this year’s peak being an order of magnitude above the last. Technical or not, the analyst argues, a six-figure high is all but logically guaranteed.

The similarities, meanwhile, are nothing new, with various sources charting the extent of price conformity to previous post-halving years throughout 2021.

One day, $31 billion settled

A lot of attention has focused on Bitcoin’s network fundamentals throughout the 2020–2021 bull run, but there’s more.

With the hash rate and difficulty all but recovered and nearing all-time highs, fresh data shows that other aspects of Bitcoin are setting records of their own.

This week, it’s about network capacity and scaling — all on-chain, before the Lightning Network is even factored in.

As noted by analyst Kevin Rooke, a single day last week saw Bitcoin handle over $30 billion of value.

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“$31 billion. That’s how much value was settled on the Bitcoin blockchain in a single day this week,“ he commented.

Alden was updating research from last year in which she had highlighted the role of GBTC in Bitcoin price action. The relative absence of the phenomenon now, she said, is conversely positive for the sustainability of BTC price performance.

Sustainable greed?

For those concerned that the return to four-month highs has been accompanied by market instability, think again.

Related: Top 5 cryptocurrencies to watch this week: BTC, DOT, UNI, LINK, XMR

According to sentiment gauge the Crypto Fear & Greed Index, the latest BTC price uptick is firmly rooted in sustainable growth.

This contrasts with the norm — moves to highs, and especially near all-time highs, tend to see the Index reach “extreme greed.” This in turn suggests an unsustainable market that is easy to destabilize, sparking a price correction.

So far, while near $57,000, Fear & Greed measures only 71/100 — “greed” rather than “extreme greed” and still far from the classic top area of 95/100 and higher.

BTC price hits $57K five-month high — 5 things to watch in BTC this week1Crypto Fear & Greed Index as of Oct. 11. Source: Alternative.me

October has nonetheless produced major changes in sentiment. On Sept. 30, for example, just two weeks ago, the Index measured 20/100 — “extreme fear.”

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