Bitcoin (BTC) Continues to Shine as Thanksgiving Week Kicks Off

If you are watching the crypto market, you’ve probably noticed that Bitcoin (BTC) started its Thanksgiving week in the United States with a return to $37,000. It seems that the bulls are unwilling to let go of the reins just yet.

Even though BTC price action is tantalizingly close to 18-month highs, another weekly close demonstrates fresh evidence of momentum in the bull market. Bitcoin continues to hold onto reclaimed ground. While the upside is not as rapid as in previous weeks, BTC/USD is still up 7% month-to-date.

What Might Happen to Bitcoin in the Upcoming Days?

A variety of macroeconomic data prints might inspire some sudden volatility, while beneath the surface, Bitcoin’s network fundamentals look robust, as evidenced by the fact that over 70% of the coins dormant for a year or more now make up the supply for the first time.

At the same time, Bitcoin dominance remains strong, leading some to believe that a classic crypto bull market might just be getting started.

Bitcoin Traders Weigh the Odds of a Price Retracement

Bitcoin closed the week at $37,500, although it failed to maintain that level. Popular trader, Skew noted that “considerable supply above price & towards $40K.” This would require persistent demand for spot BTC to break, with bullish confirmation signaling for higher prices & demand.

However, it seems that the market participants are anticipating rangebound trading in the short term. BTC/USD continues to be up 7% in November, its best performance since 2020. Although sentiment in the market isn’t great, the month of December is expected to bring volatility.

U.S. Thanksgiving Week Leads to a Short Set of Macroeconomic Data Releases

This week in the U.S. is set to be characterized by a few macroeconomic data releases. Jobless claims make up one of the highlights, release on November 22. However, consensus remains nearly unanimous that the Federal Reserve’s Federal Open Market Committee (FOMC) will keep interest rates at the current levels during their meeting in mid-December.

Bitcoin Mining Boom Raises Concerns among Analysts

Bitcoin’s network fundamentals remain strong, with both hash rate and mining difficulty in full bull mode, although some are concerned as new hash rate highs traditionally preceded a BTC price comedown. Bitcoin’s next automated difficulty readjustment is scheduled for November 25.

Dominance Fuels Hopes of Classic Bull Market

When it comes to Bitcoin versus altcoins, the classic market cap dominance surge remains in play. Research firm, Santiment wrote in an update that “Bitcoin price dominance is finally back, at least for the time being.”

Bullish Chart Signals Record-Breaking Dormant Supply

The metric illustrating the percentage of mined BTC which has not moved in at least a year has now hit all-time highs, with over 70% of the supply remaining dormant. Glassnode data indicates that Bitcoin has gained over 139% in the past year.

Hot Take: Analysts remain bullish on Bitcoin

It seems that Bitcoin traders are not quite ready to relax their grip on the impressive recent gains. The market is showing some signs of overheating, but overall, Bitcoin’s fundamentals remain steady. However, traders might need to brace for potential price swings ahead if they want to secure higher profits. Keep an eye out for any market-changing news. Only time will tell how Bitcoin will fare in the coming weeks. Make sure to stay tuned and follow the developments closely.