Today Bitcoin (BTC) price briefly pushed through the $14,100 resistance to achieve a new 2020 high at $14,259 before pulling back to retest $14,100 as support.
Although this level represents a critical resistance, data suggests that Bitcoin whales are not closing their positions in a hurry as they expect the current rally to continue. This strong show of confidence is occurring even as there is heightened uncertainty over the result of the U.S. presidential election shows that market participants expect Bitcoin price to move higher regardless of who wins the election.
Another bullish sign for Bitcoin is the record inflow of $215 million into Grayscale Bitcoin Trust last week. This shows that along with the whales, institutional investors are also bullish on the prospects of Bitcoin.
If investors continue to pour money into Grayscale at the current rate, the fund may hold about 2.7% of Bitcoin’s circulating supply in approximately three weeks.Daily cryptocurrency market performance. Source: Coin360
During the 2017 bull market, the main driver of Bitcoin price action was the spot market. However, since then, crypto derivatives volumes have surged, according to Kraken’s November report.
The spot volumes hit a high of $570 billion in Q1 2018 but dropped off “to a low of $104 billion nearly two years later,” but “derivatives notional volume exploded from below $6B in Q2 2017 to over $1.7T by Q3 2020," the report added.
While data suggest greater participation by the professional traders and institutional investors, do the technicals project further upside for Bitcoin and altcoins?
Let’s study the charts of the top-10 cryptocurrencies to find out.BTC/USD
The bears could not even sink Bitcoin (BTC) to the 20-day exponential moving average ($13,057) in the past few days, which showed that the bulls were in no hurry to book profits. This could have attracted another round of buying that has pushed the pric...