The cryptocurrency market is experiencing a surge, buoyed by strong US labor market data. Bitcoin is currently trading around $62,000, nearing a breakout above the $62,400 resistance level. This positive momentum is reflected across other major cryptocurrencies. Ethereum is up by 3.8%, Solana by 5.7%, Dogecoin by 5%, and Shiba Inu by 10.2%.
The positive market sentiment is supported by several key indicators. IntoTheBlock data reveals an increase in large transaction volume by 10.9% and a 2.7% rise in daily active addresses. However, there has been a decrease in transactions exceeding $100,000, dropping from 8,750 to 8,422 in a single day. Coinglass data reports that 41,515 traders were liquidated in the past 24 hours, totaling $116.77 million. Notably, long liquidations are at their lowest point since September 27th.
CryptoQuant data, cited by analyst Ali Martinez, shows Bitcoin miners sold 2,364 BTC, worth $143 million, over the past six days. This indicates potential selling pressure from miners.
Despite the current positive market environment, analysts are cautiously optimistic. Daan Crypto Trades sees Bitcoin’s current position around $62,000 as an attempt to break above the $62,400 level. However, he anticipates limited movement in the short term, considering it’s almost the weekend and US markets are closed. Crypto trader Jelle predicts that the current price consolidation over the weekend will lead to a push higher next week. He believes that the summer lull seasonality has ended, and Q4 bull seasonality is now in effect.
Benjamin Cowen, CEO and founder of Cryptoverse, points out that his April prediction of a 6-9 month consolidation period after reaching its mid-cycle top is nearing fulfillment. Six months have passed, and Cowen warns that if there is a labor market scare this quarter, Bitcoin could experience further decline, potentially reaching the 100-week SMA. This could extend the consolidation to nine months, similar to the previous cycle. He advises hedging for both potential outcomes.
The future of Bitcoin as an institutional asset class will be a key topic at Benzinga’s upcoming Future of Digital Assets event on November 19th. Stay tuned for insights into the evolving landscape of cryptocurrency.
