Bitcoin Price Uptrend is Firm, Trading Volumes surge 270% in Early November
An Arcane Research data reveals that the current Bitcoin uptrend is highly likely firm as it is propped by above-average trading volumes and influx from institutions and high net-worth investors. In the first week of Nov 2020, the seven-day trading volumes moving average rose 270 percent to around $3 billion setting new 2020 highs. At the same time, the number of Bitcoin whales trading CME Bitcoin Futures has more than doubled so far this year to 99.
Bitcoin, despite its decentralized nature and disparate generation of coins, is governed by the same market forces as other asset classes. A big part of asset valuation is participation; a metric gauged by trading volumes. In the first week of November, participation levels rose to a new 2020 high as BTC prices rocketed past $15,000, briefly retesting $16,000 as the hotly contested US Presidential elections ended in a stalemate that’s likely to be settled by the Supreme Court. With diverse investors flowing in, not only will a floor be set but an impetus for $16,000, and even $20,000 will be built going forward.
Impact on the BTC Price:
Bullish. The spike past $14,000, clearing above the $13,800 resistance of 2019 was a huge milestone. Notably, the bullish breakout was with high trading volumes pointing to real demand from risk-averse retailers, institutions, and high net-worth investors.
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