Bitcoin Sees a Correction After Ending October with the Highest Monthly Close Ever
Bitcoin started November around $13,760, and although in the red currently, the price of the digital asset remains hovering around $13,400 on the back of $1.79 billion volume.
The month began on a red note, but it has just started, and more exciting has been the monster monthly candle we got in October.
Interestingly and bullishly, Bitcoin had its second-highest monthly close in history in October.
— Krüger (@krugermacro) November 1, 2020
While, on Bitstamp, the longest-standing bitcoin exchange, Bitcoin had its second-highest monthly close, losing to the first by just an inch, on other exchanges, the flagship cryptocurrency actually made history.
Additionally, it was the highest quarterly close for BTC price in history as well.
As for why does it matter, “month-end asset valuation is how institutional participants appraise their holdings & investments,” stated one trader.
Now, after recording more than 27% gains in October and up 91% YTD, Bitcoin is down -2.18% in November, experiencing a correction.
However, it is not much different from last week when BTC's price dipping under $13,000. It’s to be seen how low we will go this time.
“Another strong weekly close on high time frame. With that said, let the “dips” come. It shouldn't surprise anyone who's been in this market when it happens. Bitcoin had 9+ pullbacks of at least 30% last bull market. But in the long run, we know where this is going (up),” noted trader Josh Rager.
Pullback after the October rally is to be expected, and during the last bull cycle of 2017, Bitcoin had several such corrections, which were as much as 30% to 40%. Moreover, with the US Presidential elections tomorrow, a bit of volatility is expected across the markets.
Stock markets have been experiencing a downturn since mid-October. Meanwhile, today, gold is making its way up above $1,880, the same as the US Dollar index is doing above 94.
“I don't have much a bearish thesis etc. Just seems like a nice spot for de-risking. High time frame resistance, elections coming up, not seeing evidence of fuel for a short squeeze,” said trader CryptoGainz. “Low time frame technicals are bullish, just sorta hoping for a bull trap tbh.”