According to Cointelegraph: Bulls and bears have locked horns in a fierce battle as Bitcoin aims to establish an uptrend beneath the stiff resistance near $40K. Despite closing out last week spiking above $38K, BTC has since been confined to a micro-range, leaving traders guessing as it maintains its highest level in 18 months.
Key questions linger for market participants: will a deeper retracement ensue, or will ascending towards $40K silence the skeptics? There are multiple potential catalysts in the next few days that could nudge a trend emergence for Bitcoin. Underlying these factors are signs that the market might be due for a boost.
Cointelegraph discusses the key factors that can potentially trigger Bitcoin price volatility this week:
1. Monthly close on the horizon with Bitcoin up by less than 10%: As November closes, Bitcoin finds itself at a crossroads. Traders will watch for how BTC navigates the untested liquidity levels near the $40K resistance. Despite highs and lows, neither the bulls nor the bears have been able to significantly influence the progressively narrow corridor for BTC/USD.
2. Attention on Federal Reserve's inflation data: Traders await key data from the United States Federal Reserve regarding inflation, which will inform December's interest rate policy. Fed Chair Jerome Powell is also set to speak on Dec. 1, following comments from other senior Fed officials earlier in the week.
3. Hopeful signs for Grayscale Bitcoin Trust (GBTC): GBTC, the largest Bitcoin institutional investment vehicle, appears to be nearing parity with its underlying BTC/USD pair as it currently presents a mere 8% discount to net asset value.
4. Record Bitcoin hash rate exceeding 500 exahashes: Bitcoin’s hash rate has hit its highest levels ever, surpassing 500 exahashes for the first time ever, reflecting miners' confidence in future profitability even as the Bitcoin price stands 50% below its peak.
5. Bitcoin exchange balances on the decline: After a month of turmoil, BTC balances are following a downtrend once more, in line with a broader trend prevalent for the past five years.
Analysts, traders, and market participants will watch closely to see how these factors interact and influence the Bitcoin market this week.
