Bitcoin started the week off with a rally toward all-time highs. A week of lackluster price action ended with the king of cryptos bouncing back to $66,000. This classic move has become painfully familiar in recent weeks. Now, attention is turned to bullish outcomes again. Should you sell Bitcoin this week? Read on to see what to watch for.
Wall Street has yet to open, so the tone for the third week of November has not been set. Some analysts predict Bitcoin will approach $100,000 by the end of the month. Here are three things to watch this week according to CoinTelegraph.
1. $98K by December 1
According to analyst PlanB, Bitcoin will reach $98,000 by December 1 of this year and $135,000 by January 1 of next. This analyst guessed the flagship crypto’s monthly close with almost full accuracy for three consecutive months. Other sources are looking at least $85,000 in the weeks to come.
2. The beginning of bull market distribution
It looks like Bitcoin has entered its last and most volatile bull stage if you look at what long-term holders (hodlers) are doing. According to Glassnode data quoted by analyst William Clemente, long-term investors have ceased net accumulating and are now selling into strength. He said long-term holders buy Bitcoin into weakness, adding:
We’ve just gotten our first red prints on LTH net position change in over 6 months, showing bull market distribution has begun.
In the final quarter of last year, long-term holders started selling in advance of the crypto’s dramatic price spike. Distribution reached a peak, then dropped prior to the all-time high of $64,900.
3. The role of the Taproot update
There were no bearish signals at the weekly close. Bitcoin left no room for disappointment of those concerned about what would happen at the close of last week. The final hour saw literally $1,000 of gains, which was highly typical of behavior from recent weeks.
Thus, Bitcoin closed last week above a trend spanning multiple months, which was previously considered an important test of overall strength. According to some insiders, there’s still no full appreciation of Sunday’s Taproot soft fork deployment.
Significant price increases tend to follow major upgrades. SegWit was a case in point in 2017. Capriole investment firm CEO Charles Edwards wrote:
The market has not priced in the massive Bitcoin Taproot upgrade.
