Bitcoin rises for the seventh week in a row - the best streak since November 2020.

Exactly three years ago bitcoin price also went up seven weeks in a row, and previously we could observe such a feat in March and April 2020 after the pandemic hit cryptocurrency prices. Therefore, this is an uncommon phenomenon. An even rarer phenomenon is the occurrence of eight weeks of increases in a row, which happened only in June 2017 and November 2015. Therefore, if next week was also an increase, it would mean the third such series in the history of bitcoin quotes. Will it be so?

Bitcoin price highest in 18 months

Bitcoin today hit its highest levels since May 2022, up 2022% since its November 151 low. The rate on Friday morning is oscillating around USD 38700, but interestingly, the average price change of bitcoin over the last year for monthly data drops to the lowest level since December 2020. It amounts to USD 4548 per month and seems to decline systematically until the end of November. This can only mean that for now there is no stimulus in Bitcoin prices, that is, an increase in volatility. The direction in recent weeks has been an upward one, but with statistically decreasing volatility. Could this mean a possible correction?

Resistance in the Bitcoin market

Potential resistance may still lie between USD 37000-39000, where the rate is currently approaching the upper barrier. If it is not overcome in a lasting way, the chances of a correction in this market increase. It should also be noted that the BTC/USD quotations have not seen a single lower low since September 12. This means that there has been a strong upward trend in the market for quite a long time, which, interestingly, may be supported by events in the American banking sector, and mainly by the increasing liquidity since last week.

Liquidity is currently tightening

Until mid-November, we observed a strong increase in commercial banks' reserves Fed, which in short may mean that institutions can invest in more risky assets with a lighter hand. Between BTC's September low and peak, reserves increased from $3,14 trillion to $3,48 trillion. Meanwhile, at the end of November it went back to PLN 3,4 trillion. This time, this measure would also influence the valuation bitcoin, then taking into account previous correlations, the BTC/USD rate could even go back to USD 34000-34500. This may be worth keeping in mind if the streak of no lower lows were to be broken. The last higher low is at $37500.