BTC price approaches $90,000 weekly. — 5 things to know about Bitcoin this week

Bitcoin (BTC) started the new week inches away from a new all-time high after posting its best weekly close ever.

• Bitcoin traders believe price discovery will resume next week and are eyeing the $80,000 level as a “buy the dip” opportunity.
• The weekly close set another record, but November 2024 is anything but ordinary for BTC price action.
• Markets are divided over how the Federal Reserve will handle the growing “stagflation” crisis.
• Whales are still buying BTC, and ETF flows are increasing despite the merciless reaction to last week’s all-time high of $93,500.
• Cryptocurrency sentiment gauges are increasingly heating up as “extreme greed” levels reach classic explosive high territory.

Traders brace for BTC price volatility heading towards $100,000.

Bitcoin recently saw a slight decline from its record-breaking weekly close, with shorts suffering losses.

Above $90,000 at the first Wall Street open this week, BTC/USD is already maintaining momentum with a 30% monthly gain, according to data from Cointelegraph Markets Pro and TradingView.

Popular trader Skew summed it up in one of his recent posts about

Skew noted that prices held the 21-day exponential moving average (EMA) on a four-hour time frame and highlighted two key levels to start the week: $90,000 and $91,300.

“It would be nice to see an aggressive spike to $95k-96k next week,” fellow trader CrypNuevo said in a dedicated X thread over the weekend.

CrypNuevo suggested that large traders could attempt to liquidate new traders close to $100,000, resulting in further market flow before a significant psychological price barrier is reached.

“The key liquidation level has risen, but it is also reasonable to see it surge close to $100,000 and then fall without fully reaching it,” he wrote.

“Why? Because many new traders will come to the market to try FOMO for the first time by buying long and spot. Easy prey.”

On the downside, he added, $87,000 should be maintained if the market shows signs of consolidation.

Others are looking to “buy the dip” in BTC even if a deeper retracement occurs. For traders Crypto Chase, a suitable entry comes in the form of intraday “gaps” between the wicks of daily candles.

“Eventually we will go back to a one-day gap. In a bullish situation, the first gap is a buy position. There is still 30% of the long-term open from 85,000 remaining. I would still buy the higher 83K if offered,” he told his X followers.

“The lower gap should remain unfilled until the market turns reversal/bearish.”

BTC price weekly closing record broken.

There is no denying that last week was a historic win for Bitcoin bulls.

Not only did BTC/USD record its second consecutive all-time weekly close just below $90,000, but a major BTC price correction to test new support is out of the cards.

Bitcoin’s weekly gain is 11.8%, with Q4 returns exceeding 40%, according to data from monitoring resource CoinGlass.

On a monthly basis, November 2024 remains fairly average in terms of BTC price performance over the past decade. But traders believe this could still change.

CryptoAmsterdam, a popular trading account, responded to

Skew expects “many” new weekly records to close, with BTC/USD already attempting to fill the wick, hitting an all-time high of $93,500 on November 13.

“BTC has just begun the parabolic phase of its cycle,” said trader and analyst Rekt Capital, referring to his long-term BTC price analysis.

“Historically, this phase lasted an average of 300 days. Bitcoin is only on day 12 of its parabolic phase.”

Questions about the Fed’s next interest rate cut

A relatively cool week in US macroeconomic data revealed a widening gap over future financial policy.

Recent data shows that inflation accelerated in October, leaving the Federal Reserve facing a situation known as “stagflation,” where prices rise due to rising unemployment.

This has led to mixed opinions on whether authorities will cut rates in December, with a recent estimate from CME Group’s FedWatch Tool putting a 35% chance of a pause.

“As we head into 2025, interest rate cuts have become an expectation among consumers,” trade resource The Kobeissi Letter commented over the weekend.

“Now the Fed appears to be retreating from the ‘Fed pivot.’ “Even if further interest rate cuts are made, inflation will continue to rise,” he said.

Kobeissi noted that next week we will see seven senior Fed officials speaking, as well as earnings from tech giant Nvidia, a potential catalyst for volatility in risk assets themselves.

It includes unemployment data for November 21st, followed by Purchasing Managers’ Index (PMI) and consumer sentiment reports a day later.

“The Fed’s top priority has been to avoid a situation where both unemployment and inflation are rising, as we saw in the 1970s,” Kobeissi added, along with a chart of the Consumer Price Index (CPI) against the unemployment rate.

“Has the Fed failed again to avoid stagflation?”

Whales continue to pile up amid poor ETF flows.

This month, talk of Bitcoin whales and massive accumulation by institutional investors is a key factor fueling the rally.

As Cointelegraph reported, the whales were not holding their breath as BTC/USD hit all-time highs and price discovery.

Both large and small whales continue to add BTC exposure, according to data from on-chain analytics platform CryptoQuant.

The trend is the same for U.S. spot Bitcoin exchange-traded funds (ETFs).

“Bitcoin spot ETF holdings have increased significantly from 629.9K BTC to 10545M BTC since launch in January, representing growth of 425K BTC,” CryptoQuant contributor MAC_D wrote in one of his Quicktake blog posts on November 18.

“This is an increase from 3.15% to 5.33% of the total mined supply of 19.78 million BTC, a 2.18% surge in just 8 months.”

MAC_D suggested price action would be higher due to the resulting impact on supply and demand dynamics.

“The dramatic price rises observed in March and November suggest a strong correlation between accumulation and prices,” he added.

“So, as more Bitcoin is accumulated through spot ETFs, we can expect the price to continue to trend higher.”

Nonetheless, data from sources including UK-based investment firm Farside Investors shows a volatile picture for cash ETFs, with large net inflows followed by notable net outflows last week.

Total net outflows exceeded $750 million in the two days ending November 15, after Bitcoin hit a new all-time high.

Cryptocurrency “FOMO” brings price warning

Cryptocurrency social media is “very reliably” marking the peak of each BTC price increase, a study has found.

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Santiment, a research firm that analyzes social media volume for specific terms such as price, shows that “hype” about the future hits all-time highs along with the price itself.

“Bitcoin’s incredible rise has now seen it hit an all-time high of $93,490,” he commented on November 13.

“Hype across social media platforms is calling for very steady highs, with the biggest signal coming with a surge in BTC price speculation over $100,000 at ATH four hours ago.”

Santiment added that any signs of massive “FOMO” should be taken as a “cautionary signal” and ultimately suggests a market uptrend could be reversing.

The latest figures from the Crypto Fear & Greed Index show levels of “extreme greed” last seen ahead of Bitcoin’s long-term peak in March.

On November 17, the index hit 90/100, just 5 points outside traditional market recovery territory.

This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.