November 2023 marked another strong month for Bitcoin, with BTC’s performance recording a 9.3% increase. Notably, during the month, BTC also surged past the $38,000 mark, reaching $38,410, the highest level in 2023. This surge was attributed to insurance-related fees on CME and Coinbase, signaling a bullish trend in the U.S. market.
However, despite this 9% increase, November 2023 became the first “green” month since 2020. Currently, BTC is trading around $38,100.
An interesting observation comes from trader Jelle, who notes that Bitcoin’s Relative Strength Index (RSI) is quite optimistic: “After spending the past month building hidden bullish divergence, Bitcoin has broken the downtrend of the RSI! Now, if it can hold the price within the gray box, the market may see a new uptrend.”
While Bitcoin’s price remains at a yearly high above $38,000, Bitcoin Dominance (BTC.D), which measures Bitcoin’s market capitalization as a percentage of the total cryptocurrency market cap, has shown signs of increasing in the latter part of November. This implicitly suggests that the Altcoin Season may be losing momentum.
Looking at the charts, from the end of October to mid-November, BTC.D started to decline from its peak of 54% to 51%. While the decrease wasn’t substantial, many Altcoins experienced significant gains and reached their 2023 all-time highs.
However, by the end of November, BTC.D began to rise again, while the Altcoin market cap encountered strong resistance. From this point, there were fewer Altcoins with strong upward momentum, and Bitcoin’s upward movement also faced challenges around the $38,000 level.
Currently, BTC.D is holding the support level of 52%. It seems to be the “minimum” ratio that investors want to allocate to Bitcoin. They still haven’t fully shifted their trust away from Altcoins, as indicated by a true uptrend (BTC.D below 50%). Notably, the 52% support level is likely where BTC.D will remain in December.