Bitcoin Uptrending on the Weekend But Not Everyone Wants to Bet Against the Brute Force of Billionaires
After yesterday’s drop to $17,600, today Bitcoin is back around $18,500.
Given it’s the weekend and the Bitcoin market is being led by US investors, with only $2.44 billion in ‘real’ volume, BTC is keeping around $18,450.
“Bitcoin looks like it could be ready to range higher over the weekend,” noted Hxro Labs. “If it manages to break into the VPVR value area around $18400, expect to see it trend up to the Point of Control ($19,086) shortly after.”
Compared to Bitcoins’ gains, ETH only managed to get to $560 while other altcoins are rallying much harder, including BASE (132%), NEM (25%), HAKKA (20%), YFI (12%), AAVE (11%), Monero (10%), IOTA (9%), Cardano (7%), and Litecoin (6%).
However, it’s still not known in which direction Bitcoin will move next. Many expect the pain to continue and even get us a better ‘buy the dip’ opportunity, while others expect the momentum to take us upwards.
Local resistance and downside support levels.
We could spend a while in the $12k-18.4k region. pic.twitter.com/DlrWzkKglG
— NebraskanGooner📈 (@nebraskangooner) December 11, 2020
As one trader noted, “One of the reasons I forfeited on the idea to get another significant short position is that I don't want to be betting against brute force of billionaires.”
It has only begun
2020 for Bitcoin has been all about institutions; everyone wants a piece of the largest digital asset. It’s just that a few of them have revealed their positions while many are expected to be doing it without public disclosure.
“Reality is that I don't know what will happen from here. Big cash flows are entering Bitcoin. Technicals that say downside is possible can be blown out of the water, whilst we should also not forget that institutionals don't dictate bitcoin entirely, yet,” wrote the trader on Twitter.
Wall Street legends Stanley Druckenmiller, Paul Tudor Jones, Bill Miller, and others like Mexican media billionaire Ricardo Salinas Pliego have been endorsing Bitcoin. After influential money manager Rick Rieder said Bitcoin “is here to stay,” Larry Fink, CEO of BlackRock, also noted that this untested and small market has “caught the attention and imagination of many people.”
However, “the adoption of Bitcoin by institutional investors has only begun,” as written by the analyst team of JPMorgan led by Nikolaos Panigirtzoglou.
Christian Armbruester, the founder of Blu Family Office, a London-based investment firm for wealthy clients, told Bloomberg that he wishes he’d bought more BTC, which he dabbled in a few years ago.
“We’re now looking for trading opportunities in a very exciting field,” said Armbruester, who manages $670 million for Blu Family Office.
Thanks to currency devaluation
This traction has been particularly the result of central banks and governments flooding economies with cash and dropping the interest rates to zero and sub-zero to address the coronavirus pandemic.
As we reported this week, first, ECB announced a $600 billion COVID-19 stimulus only for German Chancellor Angela Merkel to unleash another monstrous fiscal stimulus package to pump €750 billion directly into the economy, the very same day.
“Normally in times of crisis people run to cash but who in their right mind wants to be cash-rich at a time when major economies are devaluing their currencies?” says Kevin Murcko, the founder, and CEO of CoinMetro, an Estonia-based crypto exchange.
Even Ray Dalio, the founder of the world's largest hedge fund, Bridgewater Associates, said cash is trash and bitcoin can act as an “interesting” investment diversifier.
“You could say that Covid-19, the U.S. election, Brexit, and, well, the entirety of 2020 have altered the way many in traditional finance view the value of digital assets,” Murcko added.