- Bitcoin is about to see its next weekly candle close, one that analysts say will be critical.
- One trader highlighted how this candle will most likely mark Bitcoin’s highest weekly candle since the blow-off top seen at the end of 2017 and start of 2018.
The Importance of Bitcoin’s Upcoming Close
Bitcoin is about to see its next weekly candle close. In the coming hours, the leading cryptocurrency will print its latest weekly candle.
Analysts see this weekly candle of utmost importance as it will likely mark Bitcoin’s highest weekly candle since the blow-off top seen at the end of 2017 and start of 2018.
Edward Cleps, a top crypto-asset trader, shared the chart below, showing the significance of the upcoming close. He commented:
“This weekly close is more important than you think. Bitcoin didn’t close above 11,700 since the last bull mania valhalla run.”
As he notes, BTC hasn’t seen a close above $11,700 since the highs seen at the start of 2018. Previous rallies, such as the relief rally in mid-2018, the summer rally of 2019, and the recent jump this past summer all ended at $11,700 on a weekly basis. Bitcoin breaking higher here will confirm that it is in the midst of an uptrend, one that will likely bring it to new all-time highs over time.
Chart of BTC's weekly price action since the middle of 2017 with an analysis by crypto trader Edward "Teddy" Cleps (teddycleps on Twitter). Source: XBTUSD from TradingView.com
Price Poised to Push Higher
Analysts say that Bitcoin is poised to push higher from here.
One crypto technician noted that while BTC is dramatically higher than it was in the summer, the futures market is not yet overheated. He pointed to this chart below, which shows that the aggregated funding rate of top futures platforms are not yet well into the positive. This suggests that Bitcoin still has room to extend to the upside without causing the price action to become unsustanible:
“I realized just now that there is a strong case to be made that we continue going parabolic a bit longer. Price is higher than during the previous range (July-August), yet the market isn’t nearly as overly bullish as then. Shout-out to @BTC_y_tho for spotting this.”
The neutral funding rate seen now suggests that Bitcoin derivatives traders are not leading this rally.
Chart of BTC's weekly price action since the summer with an analysis by crypto trader Byzantine General (Byzgen on Twitter). Source: XBTUSD from TradingView.com
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitcoin Could Soon See a Pivotal Weekly Candle Close Above $13,000