Over the weekend, the price of the Bitcoin fell to the $15,700 level, but today, we made another attempt to test high levels. Going back to nearly $16,400, currently, Bitcoin is trading in the green with $1.85 billion.
According to on-chain analyst Willy Woo, Bitcoin is shaking off the bearishness technicals that make short and mid-term on-chain fundamentals bullish as more coins get scooped off exchanges still. This means more users arriving, indicating a buy the dip scenario.
$BTC revisiting 13K would make sense chartwise. But many current inflows are chart agnostic. $BTC could rip faces off in the next 2-3 months, pull a Tesla. The returns profile remains assymetric. So not beting on a pullback.
— Alex (@classicmacro) November 14, 2020
This price action is rather organic, means instead of dominated by short term derivative traders, it tracks closely with investor capital entering and leaving.
The Realised Price of BItcoin, which estimates the average price the market paid for their BTC, is currently at its steepest slope for this cycle, “meaning capital influx into Bitcoin is at its highest rate since the last bull market,” said Woo.
Given that it is higher than last year’s $4k-$14k move, the current move signals to be more organic.
“If you missed 2013 and 2017 bull markets: current bitcoin price rise to $16K is just a small taste of what will come next. We are just warming up,” said analyst PlanB.
2021 will be the year of Bitcoin as digital gold.
— Alex Krüger (@krugermacro) November 13, 2020
Already, the aggregate open interest (OI) continues to rise to new highs with that of the regulated venue, the CME, not lagging behind its peers either, a critical factor to consider.
“The outperformance is led by venues that provide stablecoin margined futures as opposed to Bitcoin margined products. As a result, the market is in a much healthier condition than it would have been if the said movement into stablecoin margin products did not happen. This leads to belief that higher levels will be achieved with much less strain on the market,” said Denis Vinokourov of Bequant.
a BTC ATH becomes inevitable imo based off what I see.
ever since March 2020, we entered a new paradigm, open interest need to be interpreted + thinked differently, examine the market impact these exchange's products produce and these exchange's rise and falls. https://t.co/DlSuOtwimn pic.twitter.com/4UJnUaiapZ
— CL (@CL207) November 16, 2020
The market cap of stablecoins has exploded this year, with that of the largest one, USDT surpassing $18 billion. All this dry power could further help the market run higher when prices start trending up again.