Bitcoin (BTC) Holds Strong at $37K as Eyes Turn to Thanksgiving Macroeconomic Data
Bitcoin (BTC) is starting the Thanksgiving week in the United States with a return to $37,000 as bulls persist in their push for higher levels. The largest cryptocurrency continues to hold onto its recent gains, with BTC/USD up 7% month-to-date, signaling strong momentum in the bull market.
As Bitcoin retains its ground, macroeconomic data prints and supply dynamics are shaping the landscape. The network fundamentals for Bitcoin remain strong, with hash rate and mining difficulty reaching new highs. In addition, Bitcoin dominance is staying strong, fueling hopes of a classic crypto bull market in its early stages.
Bitcoin Price Volatility and Short-Term Outlook
Bitcoin traders are closely watching the price action as BTC hovers around the $37,000 mark. Some market participants anticipate rangebound trading to continue for the short term, with resistance at $38K and support at $33-34.5K as key areas to watch for long entries.
A retracement to test recent liquidity is expected, but unlike its initial push to 18-month highs last week, Bitcoin market data shows a much calmer atmosphere among traders. The overall open interest is low, and funding rates remain neutral, despite modest gains of 7% in November.
Jobs and Federal Reserve Minutes Lead Short Thanksgiving Macro Week
The U.S. Thanksgiving week is characterized by a cool set of economic data releases, with jobless claims being one of the highlights. Market participants are in “wait and see mode” ahead of the next decision on interest rate changes due in mid-December, with consensus leaning toward current levels remaining in place at the Federal Reserve’s Federal Open Market Committee (FOMC) meeting.
Bitcoin Mining Boom and Network Fundamentals
Despite the bullish signs for Bitcoin’s network fundamentals, there are warning signs, particularly related to the potential market impact of new hash rate highs. Historically, new hash rate highs have preceded a BTC price comedown, and analysts warn of a potential pullback towards the $30,000 mark.
Bitcoin Dominance and Market Cap
Bitcoin’s dominance in the crypto market cap remains strong, accounting for around 52.5% of the total market cap. Altcoins have retraced on the tail end of the recent hot rally, leading to a resurgence in Bitcoin price dominance. Bitcoin traditionally advances prior to major altcoins, and analysts anticipate a sequence where Bitcoin dominance takes off again while BTC grinds up, leading to a potential flow back into altcoins to play catch up.
As Bitcoin continues to hold strong at $37,000, the coming days will provide further clarity on the cryptocurrency’s short-term outlook and the impact of macroeconomic data on its price action. Bitcoin’s dominance and market cap will also be closely monitored as the cryptocurrency market enters the holiday season.
❗Follow us on Twitter to get all the latest crypto news as soon as they're out! 🚀