Right now BTC is facing major resistance at $14K. Next week is going to really crucial. If BTC able to close above 14K by 7NOV then I don't see any resistance till 17K. But this time I don't think BTC is going to achieve 20K level that easy. Last time, BTC jumped from 14K to 20K in just 1 week. Even it is not healthy for any trading asset to move that fast. This is the reason, BTC crashed so badly touching 20K mark. Slow and steady move encourage investors to invest and give confidence to HODL. Hope to see BTC at new high soon.
An excellent run down of our current situation ~Money~ and I agree slow and steady is the best case scenario in the long run.
A recent Forbes article by Billy Bambrough provides some additional additional details quoting some industry experts. In short, since pandemic broke, bitcoin was *highly* correlated with equities, but more recently that has changed as bitcoin started to largely chart its own course based on it's own industry news/merits instead of the dancing nearly exclusively with the equities. That said, when the market crashes again crypto will likely follow initially at least to some degree. HOWEVER, it should bounce back more quickly since the underlying fundamentals that can (and should effect) the equities largely shouldn't impact something like bitcoin (other than the fact that investors might have less money to invest). That said, Ballinger states, and I personally agree, that bitcoin will likely "test the ‘digital gold’ thesis of bitcoin further" in the future as the pandemic continues on.The bitcoin price surge over $14,000 per bitcoin comes shortly after a number of huge bitcoin transactions—worth more than $100 million—and follows the expiry of $750 million worth of bitcoin options contracts on Friday.
This bit was interesting tidbit and I don't know what to make of it. Does anyone want to speculate?Meanwhile, the bitcoin and cryptocurrency market has been rocked by $100 million worth of bitcoin being removed from two exchanges in the last few hours, the San Francisco-based Coinbase and the Luxembourg-based Bitstamp. A Twitter bot set up to track big bitcoin and crypto transactions, made by so-called "whales," recorded the three separate transactions.
“For most of the pandemic, bitcoin remained correlated with equities," Andrew Ballinger, an associate at digital asset manager Wave Financial
Bitcoin, which climbed to highs of $14,000 per bitcoin on Bitstamp before falling back to trade around $13,900, has found support over the last couple of months by a raft of bullish bitcoin news and increasing belief among some investors that bitcoin will serve as a hedge against a tidal wave of inflation they see on the horizon. This has led to bitcoin decoupling from the stock market over the last week or so.
In June, the one-month bitcoin-S&P 500 correlation reached an all time high of 66.2%, according to data from Skew Analytics. Since June, this one-month bitcoin to S&P 500 correlation remained well into double-digits, for the most part hovering around the 40%-50% range, until the double-digit positive correlation broke this month.
"I wouldn’t be fully honest if I said I didn’t believe a major downturn in equities would have no effect on the still nascent digital asset economy, but I think this return to single digit and potentially negative correlation is a step in the right direction for those who believe in bitcoin’s store of value thesis," Ballinger added.
"With continued uncertainty surrounding the economic recovery, investors may turn to digital currencies over equities, and test the ‘digital gold’ thesis of bitcoin further."
