- Bitcoin is fast approaching its all-time high after climbing above $65,000 having added more than 5 percent overnight.
- Top analyst Scott Melker has noted that resistance is futile with his outlook supported by several upcoming events.
Bitcoin (BTC) has rallied overnight and climbed above $65,000. The rally-inspired a wider market move and has successfully seen the total market cap top $3 trillion, a new all-time high. The worlds largest cryptocurrency is now fast approaching the all-time high of $68,000 reached in late October. At the time of press, Bitcoin is exchanging for $65,900 according to our data.
The $65,000 position is a critical level and one that analysts viewed as a key resistance point. With the digital asset over this, and with a number of key developments coming up soon, BTC looks likely to reach and surpass the all-time high level.
Investors sentiment is currently very bullish with Crypto Fear & Greed Index showing that Bitcoin investors are edging towards “extreme greed.” When sentiment is greedy, this means that there is Fear of Missing Out (FOMO) leading investors to buy heavily ahead of a major breakout.
BTC on-chain data supports bullish case
On-chain analyst, Dylan LeClair has shared on Twitter his views on the recent jump stating that it is a result of spot selling exhaustion and not an increase in leverage. As such, prices are likely to continue upwards.
$BTC +$2,000 over the last couple hours with no large uptick in futures open interest or perp funding.
Current price action is a result of spot selling exhaustion, and not a result of a sudden increase in leverage.
No sell side liquidity = gap upwards. 📈📈 pic.twitter.com/owOnuB4KVy
— Dylan LeClair 🟠 (@DylanLeClair_) November 8, 2021
Despite prices maintain above $60,000, data points have shown that miners and long term holders are holding with solid resolve. Data from on-chain analytics provider CryptoQuant shows that the outflow from miners has been flat. This is an indication that miners are anticipating the value will go even higher and add to their profit. Analytics firm Glassnode earlier noted;
Despite this reduction in $BTC denominated income, miner revenue in USD is up 550% since the 2020 halving and approaching an ATH of $62M+ per day.
Accompanying this is the continued resilience in hash rate. Since the May ban in China which saw the same plummet, the hash rate has stably made a comeback and is back to the same levels.
LeClair notes that the comeback has shown the sheer resiliency, robustness, and decentralized nature of Bitcoin.
#Bitcoin hash rate continues to surge, averaging 161.2 EH/s over the last seven days.
— Dylan LeClair 🟠 (@DylanLeClair_) November 7, 2021
Later this week, the U.S. consumer price index (CPI) is set to be released with many expecting it to bring positive news for the crypto market. With the ball dropping on the current state of the economy, many anticipate that the numbers could likely encourage investment in the crypto market.
A senior investment specialist at Citigroup recently told Bloomberg;
We are of the view that there is upside risk in both these CPI numbers and as a result, there is actually a risk the Fed might actually accelerate the pace of asset purchases,
Analyst PlanB has also shared a chart that shows that Bitcoin has laid out a bullish path.
— PlanB (@100trillionUSD) November 7, 2021
With these and more data points supporting the case for more gains, investors are looking forward to a momentous month and a strong end to the year.