Journalist
Posted:
The last week of November feels like a breathing space for the market.
After three consecutive red weeklies that wiped out $970 billion total crypto market capitalizationThis week alone, the market is up more than 5%, with inflows of $160 billion, potentially marking the first green weekly close of the month.
Particularly Bitcoin [BTC] accounts for 62% of the inflow, while the Altcoin Seasonal Index dropped to the level of mid-July. With flows clearly being routed through BTC, the Bitcoin price forecast looks bullish heading into December.
Source: Glassnode
That said, a full bull run will not be confirmed until BTC breaks through key resistance.
Glassnode data reveal four major supply clusters that could hinder Bitcoin’s path to a new all-time high. These clusters represent price zones where long-term holders (HODLers) are most likely to sell at a breakeven point.
To maintain momentum, the broader macro environment must remain supportive; Otherwise, investor FOMO could quickly fade. Encouraging, the Fear and greed index is up 8 points this week, shifting sentiment from extreme fear to moderate fear.
Meanwhile, on-chain metrics are recovering, indicating a less risky trading environment. Together, the micro and macro reset point to a strong accumulation phase, with a potential bear trap acting as a gateway to breaking through resistance.
Bitcoin price forecast signals a move towards six figures
Now that Bitcoin is in a risk phase, a shortage of liquidity is naturally building up.
Simply put, when BTC held its limit and sentiment hit extreme fear, large clusters of traders formed and bet against it. As momentum shifts back to risk-on, many of these positions are getting stuck.
MintGlass shows $1.13 billion in liquidations this week, 61.3% of which are short bets. This is the first week of the month where short liquidations dominated, after three straight weeks of over $1 billion in long liquidations.
Source: TradingView (BTC/USDT)
Of course, $100,000 stands out as a major target for Bitcoin price prediction.
The odds? BTCs capitulation statistics improve, with net realized profit/loss turn around green and realized losses decrease. Combined with a recovery of signals in the chain, this indicates that the supply is being steadily absorbed.
If this momentum continues, there could be a push toward a six-figure Bitcoin price forecast, with the recent eradication of short liquidity suggesting bulls are targeting key levels and triggering bear traps to reclaim resistance.
Final thoughts
- Bitcoin is leading the market inflows, but key resistance levels have yet to be broken
- Improving on-chain metrics and a tight liquidity crunch indicate bulls are gearing up for a bigger move.