Bitcoin showed rare calm on November 10 as volatility gave way to smaller movements above $15,000.
Data from price trackers including CoinMarketCap and TradingView showed BTC/USD hovering in a tighter range on Tuesday, focused on around $15,400.
The action, which at press time had lasted for just over 12 hours, contrasted considerably with the previous trading period, in which Bitcoin put in $14,400 lows before bouncing back to near $16,000, then reversing to $14,850 before reclaiming $15,000.
Trader bets on record monthly close
At current levels, there was cautious optimism among traders eyeing further upside in the remainder of 2020.
For Josh Rager, this would hinge on how Bitcoin performs as November progresses, with a higher monthly close opening up the possibility of significant gains.
“Every time Bitcoin has closed above the previous monthly all-time high – a 700% to 1000% uptrend has followed,” he noted on Twitter Tuesday.
“November could be the first monthly close that we see breaking the previous high and historically that’s been a very bullish sign for the crypto market.”
Despite October being already the second-highest monthly close in Bitcoin’s history, not everyone was convinced that recently-won levels would endure. On Monday, as Modern Consensus reported, fellow trader Michaël van de Poppe warned that a potential correction could run as low as $11,500—a drop of 25%.
With the US dollar currency index (DXY) trending up after the election, he added on Monday:
“There we seem to go. $DXY bouncing up as there’s more certainties at this point, through which assets like #bitcoin, gold and silver drop down substantially. A correction on $BTC would be tremendous and a great opportunity in general.”
Druckenmiller opens Bitcoin doors to hedge funds
Outside immediate price action, however, bullish signs continued to mount. On Monday, it was thanks to serial investor Stanley Druckenmiller, who told mainstream media that he now both owned and would recommend Bitcoin as an investment.
“I own many, many more times gold than I own Bitcoin, but frankly, if the gold bet works, then the Bitcoin bet will probably work better, because it’s thinner, and more illiquid and has more beta to it,” he summarized in an interview with CNBC.
Reactions were immediately favorable, with Real Vision CEO Raoul Pal among the most complimentary of Druckenmiller.
“The significance of the worlds greatest and most respected money manager – Stan Druckenmiller saying just now that he is long bitcoin can not be overstated,” he tweeted.
“That has removed every obstacle for any hedge fund or endowment to invest…”
Data on Friday showed that hedge funds remain record short BTC, while institutional investors conversely are record long. Druckenmiller built on recent signs of a shift in their mentality, after JPMorgan analysts said that there is now more demand for Grayscale’s Bitcoin Trust than all gold exchange-traded funds (ETFs) combined.
“…Some investors that previously invested in gold ETFs such as family offices, may be looking at Bitcoin as an alternative to gold,” reads a report from the bank, quoted by Grayscale managing director Michael Sonnenschein.
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November 5, 2020 -
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