Bitcoin Thanksgiving gift why BTC is heading for a new rally


Bitcoin was trading on the green side that Thanksgiving morning, gaining 4.1% on the 24-hour chart. The price of BTC is approaching critical resistance levels at $ 59,042 and could see more appreciation in the short term if it manages to flip $ 60,000 in support.

Bitcoin Thanksgiving gift why BTC is heading for a new rally
BTC is trending up on the 4-hour chart. Source: BTCUSD Tradingview

Bitcoin has been in a range of mostly low volatility for the past week as the price declined near $ 60,000 on Monday. According to QCP Capital, an institutional investor is most likely responsible for the price action and the suppression of any serious momentum in attempts by BTC to recover.

Related reading | TA: Bitcoin breaking this confluence resistance could trigger a rebound

This institutional investor has put pressure to sell as Bitcoin tries to regain previous highs, the company noted. QCP Capital suspects that this player or players could push the price of BTC down in order to place bearish put options on Bitcoin and Ethereum.

With that in mind, the general sentiment in the market has fallen, NewsBTC reported. Most operators have gone into fear mode but could become extremely scared if the selling pressure causes Bitcoin to collapse further. QCP capital added:

We bet the market will consolidate rather than break down. So we take the opportunity to short vols in BTC and ETH, as well as pull down profits from our risk reversal position and switch to a topside skew.

At press time, Bitcoin’s current rally to $ 60,000 appears to be quite strong, with support in the $ 55,000 to $ 58,500 range. According to the In / Out of the Money Around Price metric, over 3 million addresses bought 2 million BTC at these levels.

A big surrender to a new bitcoin rally?

Jarvis Labs analyst Ben Lilly recently attempted to answer the question that seems to be on the mouth of every trader and investor: Has the Bitcoin bull run over? As can be seen below, BTC’s bullish momentum is valid as long as it stays above $ 43,000.

Bitcoin Thanksgiving gift why BTC is heading for a new rally
Source: Jarvis Labs via Ben Lilly

In support of the bullish thesis, Jarvis Labs is seeing strong institutional demand for Bitcoin. Historically, when BTC sees this level of accumulation by large investors, future price movement will experience a strong upward trend.

Bitcoin Thanksgiving gift why BTC is heading for a new rally
Source: Jarvis Labs via Ben Lilly

Conversely, if BTC sees low demand from whales, it suggests that a cycle has been reached. Ben Lilly added last week’s pattern of whale accumulation:

(…) Whales begin to intervene. And that change is likely to show up on the 30-day chart in a few weeks’ time.

However, Jarvis Labs warned of behavior in the Bitcoin derivatives sector in November. Funding rates in this sector remain very positive and although they have come down with the recent downtrend, they still suggest that the market is overheating.

Related reading | TA: Bitcoin continues to struggle as to why BTC could drop below $ 55,000

So another re-test of the lows and a full market reset seem to be on the cards. This could be the final sacrifice for Bitcoin to hit a new all-time high in 2021.



Bitcoin Thanksgiving gift why BTC is heading for a new rally

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