2020-11-10 16:14 |
Over the weekend, Bitcoin's price took a drop of about 8.5% to the $14,400 level. This has the first meaningful retracement ever since the BTC price started trending up this month, going from $13,000 to almost $16,000.
Today, we are back on the move, going as high as $15,845, starting the week with greens of about 3% with $2.6 billion in trading volume.
“Nice recovery over the weekend with low volume but still no higher highs yet. Funding is still okay. We might be chopping a while here,” said trader CryptoSqueeze who has closed his long swing position for now, “until a more obvious pattern forms.”
#bitcoin unchanged this weekend but intraday volatility is ticking up pic.twitter.com/M4Q4Q8FrKN
— skew (@skewdotcom) November 9, 2020
Bottomed or Short Squeeze?Up 113.50% YTD, Bitcoin has taken a rest from the recent rally, giving altcoins a chance to record some gains as well.
Bitcoin has no doubt beaten the traditional assets, gold (28%) and S&P 500 (8.63%), by a wide margin in year to date performance. But after many sessions of outperforming the rest of the market, Ethereum staged a dramatic run in the wake of positive news related to its PoS transition.
Additionally, the small-cap index is trading up 9.5%, now almost in lockstep with the large-cap counterpart, which has been up over 10% — in contrast to the performance in previous weeks where capital inflow was largely in the large-cap assets.
Defi last week: short squeeze or bottom is in? pic.twitter.com/3lQHXjueYi
— skew (@skewdotcom) November 9, 2020
DeFi tokens have actually been the ones that recorded percentage gains in four figures. While TVL advanced back to the record highs, DEX Uniswap topped $400 million for the first time since early October.
The magnitude of recent selling pressure in DeFi assets has now “enticed plenty of bargain hunting related flow” with the most notable gainers, in terms of one-week performance including Aave (80%), Hegic (76%), SNX (61%), RUNE (54%), YFI (42%), CRV (26%), YFII (25%), and Uniswap (20%).
Aave's token migration and ticker change from $LEND to $AAVE is the one of the most ingenious price discovery tactics in the history of DeFi.
— Qiao Wang (@QwQiao) November 8, 2020
Who’s Buying the Rally?Still, Bitcoin is the one that is only 30% away from its all-time high of $20,000 made during the bull run of 2017. But market participants believe BTC isn’t ready for that level yet and would “dance” around its current levels for a few weeks.
“I still think ur insane if u tryna macro long BTC over $15k,” said trader loomdart.
$btc could hit ATH and I dont think the sentiment around here is going to change, people are way too heavy in $ALTS and until they move it's going to be relatively calm
— saylor moon (@MoonOverlord) November 8, 2020
But according to on-chain analyst Willy Woo, it has been the high net worth individuals, the smart money, that has been buying this rally.
It is not just smart money but also new smart money, as seen in the rate of new investors coming in per hour previously unseen before on the blockchain, which is “seriously bullish.”
As we reported, recently Grammy-nominated rapper Logic also announced to his 2.4 million Twitter followers that he had made a ‘big investment‘ in the digital asset.
This can be seen from the average transaction value between investors taking a big jump upwards, the same as over-the-counter (OTC) desks.
“Bitcoin is still in it's stealth phase of its bull run,” said Woo.
Bitcoin (BTC) Live Price 1 BTC/USD =15,387.9657 change ~ -0.73Coin Market Cap
285.27 Billion24 Hour Volume
33.26 Billion24 Hour Change
-0.73 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");The post New Smart Money Buying The Bitcoin Rally While Selling Pressure Entices Bargain Hunting Flow in DeFi first appeared on BitcoinExchangeGuide.
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