BTC/USD Reaches for Record High - Expert Commentary - Dukascopy Bank
Fri, 20 Nov 2020 16:30:45 GMT
Source: Dukascopy Bank SA
Since the first of October, the price for Bitcoin has surged 87.02%, as it had been breaking one resistance level after another. Moreover, the surge was expected to continue due to a number of reasons that were discovered by Dukascopy Analytics.
First of all, recent crypto news indicate that large banks have been buying up and pushing up the price of BTC. For example, as reported by BTCNN, JPMorgan recently announced that the price for the crypto could increase tenfold. Such an announcement could be made due to the bank being interested and motivating the retail trader sector and investors into pushing the price up.
Secondly, research of Google search popularity shows that the search term "buy bitcoin" is at its low levels. The search for this term skyrocketed in 2017, when the prior high level of the coin's price was reached. It indicates that the retail sector has not started buying up the crypto.
In addition, general news outlets were not reporting on the surge, as it was going on, which signals that the general population has not been informed.
Last but not least, cryptocurrency exchanges have been reporting that the total available supply for trading BTC has been decreasing, a some buyers have started to use it as a value storage. Namely, the supply side of the price discovery equilibrium has decreased.
It can be deducted from these factors that the larger market participants have bought up the crypto as a safe haven asset. Meanwhile, the retail sector is still set to discover that the larger players have started to use it as a safe asset. The news of the surge becoming popular, could cause more buying.