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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.
Details:
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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