Bitcoin on the Verge to Breach ATH?

The Bitcoin market looks like it has taken a pause after a massive bull run it had a few weeks ago. After testing its lows, the long-term trend buyers did come back in action and take the market back to the highs but failed to breach and hold above the highs as of yet.

The story remains the same with Ethereum as well as altcoins, where most of them are either consolidating at their highs or slowly inching to the highs.

On the bigger picture, however, the trend of the crypto market, especially Bitcoin and Ethereum, remains unaltered. Both cryptos, as mentioned, are their ATH and are still holding grounds at the same levels despite the sellers trying to push the market lower in the supply regions.

Bitcoin Volatility Gets Off-Highs

The cryptocurrency sector’s high volatility and continuous price movements are two elements that frequently attract investors. According to Bloomberg, Bitcoin crypto is gradually becoming a less volatile and more stable asset. And one of the primary reasons for the reduction is due to the increased institutional participation and money flow.

Several analysts alerted crypto speculators about Bitcoin’s maturation and clearly asserted that it would result in a decrease in volatility. Because of the significant institutional cash flows, Bitcoin’s 260-day volatility has plummeted to 66, the lowest level since the price lows the crypto left in mid-May.

With the reduction in high turbulence, the BTC asset specifically could get more awareness among conventional traders and investors, resulting in a stronger link between Bitcoin and the traditional markets.

For instance, the stock market’s short-term downturn was mirrored in Bitcoin and many large market-cap altcoins. Thus, with BTC’s volatility decreasing, we may see even more parallels between the two markets’ moves.

Total Number of BTC with Crypto Exchanges Plunges to Three-Year Lows

The bitcoin exchange balance, according to the data published by Glassnode, is at its lowest level in a three years period. As of early November 2021, the exchange balance was 2.46 million BTC. When compared to the second quarter of the same year, the exchange balance was above 2.47 million BTC. This drop in the BTC balance is indeed a bullish signal for the Bitcoin market in the long run.

The previous time the BTC exchange balance was this low was at the beginning of 2019. Following that era, the market remained stagnant for a few months before undergoing another big bull run that propelled it to new all-time highs. According to Kraken, long-term bitcoin holders appear to be stockpiling as well, lending validity to the possibility of growth.

Bitcoin Hash Rate Continues Upward Trajectory

This week, difficulty in Bitcoin mining will make its ninth straight positive correction, which hasn’t happened since last year. The difficulty level will rise to more than 21 trillion, slightly over 3 trillion below ATH.

BTC mining difficulty has already more than made up the deficit it had been imposed after China compelled miners to stop working in May.

A similar narrative can be found in hash rate, which is a measure of processing power allocated to mining. Despite the fact that it is hard to gauge in precise terms, estimations suggest that the hash rate is still heading towards new all-time highs.

Speculators Await Fed Announcement

The next week may see some predictable movements on traditional markets, as well as their usual blow effect on crypto markets. These would be a result of the US Federal Reserve’s recent statements on coronavirus control, as markets look for more clues on portfolio reduction. Such circumstances add to Bitcoin’s appeal as a naturally deflationary asset class with a provable supply limit. Furthermore, institutional flows into existing Bitcoin investment products, as well as the recently introduced futures ETFs, show that demand is expanding.

Bitcoin Price Update

The Bitcoin market has reclaimed the $60,000 mark this weekend after dipping a thousand US Dollars below it. Although the high stands at $67,000, the market has never retested that price point. But on the bullish side of things, the consolidation is happening in a narrow range between $60,000 and $63,000, which is well above the resistance-turned-support zone.

On the market capitalization front, the market cap of Bitcoin has increased by over $30 billion from $1.13 trillion to $1.16 trillion within Monday’s London trading session.

As of writing, Bitcoin trades at $61,800 and thereabouts. On the smaller timeframe, the price has begun to stay range-bound between $61,600 on the lower end and $62,400 on the higher end. 

Given that altcoins are turning around to the upside with immense momentum, Bitcoin could eventually break its resistance levels to reach its ATH and even surpass it in this attempt.

Now you can get Bitcoin and most of your other favorite cryptos from our list of popular and reliable cryptocurrency exchanges.