Bitcoin Range-Bound as Traders Expect Strong November

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Bitcoin has traded in a narrow range over the past few days. It looks like the extreme bullish sentiment is starting to cool down after BTC hit an all-time high of around $ 66,900 two weeks ago. For now, traders are bracing for a strong November and expect positive crypto returns by the end of the year.

Nonetheless, some analysts are forecasting a slight pullback as open interest increases in the bitcoin futures market. “[Rising open interest] is usually a bearish signal because it means there is more leverage in the system – this increases the chances of a liquidation event where traders are forced to sell and prices fall, ”Marcus Sotiriou, a trader at the UK-based digital asset broker GlobalBlock, wrote in an email to CoinDesk.

“Besides open interest, the euphoria seen on the rise of coins even last week, notably SHIB, could contribute to short-term leverage, due to the increase in the number of retail traders,” he said. writes Sotiriou.

On the occasion of US Election Day, a public holiday for the CoinDesk company, Market Wrap will not be released on Tuesday.

Latest prices

Bitcoin (BTC): $ 61,135.37, + 0.55%

Ether (ETH): 4,355.40, + 2.38%

S&P 500: 4,613.67, + 0.18%

Gold: 1,793.47, + 0.74%

The 10-year Treasury yield closed at 1.56%

Seasonal strength for bitcoin

Bitcoin tends to gain 11% -18% in the fourth quarter, which is one reason some analysts have maintained their bullish outlook on crypto prices for the rest of the year. It appears that BTC followed a seasonal pattern with a massive selloff earlier this year and a volatile September, although the drop was limited as traders entered to buy on the lows.

Despite the sharp price swings, bitcoin’s long-term uptrend remains intact. And generally, analysts view cryptocurrencies as a seed investment. “Crypto is still under-owned and there is still a great lack of knowledge,” but the industry is rapidly gaining ground among professional investors, crypto trading firm QCP Capital wrote in a Telegram chat.

The story continues

Bullish Tuesdays

Here is another interesting statistic for traders. CoinDesk Research has analyzed Bitcoin’s average daily returns since 2010 and found Tuesday to be the most bullish day of the week, followed by Wednesday.

Crypto cash inflows are slowing

Digital asset investing products registered a total of $ 288 million in entries in the week that ended last Friday, according to a report released Monday by CoinShares. That’s down from the record $ 1.47 billion the week before, but it helped push inflows to $ 8.7 billion year-to-date.

Like the week before, the majority of new investments have been in bitcoin-related funds, at around $ 269 million.

The decrease in flows coincided with a market hiatus as bitcoin (BTC) hit its all-time high of $ 66,974 on October 20, but retreated last week.

Even tokens rallied in October

Popular memes tokens made big gains in October as sentiment in the cryptocurrency market improved, CoinDesk’s Lyllah Ledesma reported. The SHIB dog-themed coin’s 765% gain in October made it the top-performing cryptocurrency of the month among those with a reported market cap of at least $ 10 billion.

And last Thursday, dogecoin hit its highest level since August 20, trading near $ 0.30. It ended the month with a market cap of $ 36 billion.

Within CoinDesk 20, a group of 20 organized digital assets, the top performing coins in October were Polygyon’s MATIC, which climbed 56%; Polkadot’s DOT, up 36%; and Ethereum Ether (ETH), which increased by 30%.

Altcoin balance sheet

Avalanche Developers and Investors Form $ 200 Million Investment Fund: A group of former Ava Labs and Avalanche Foundation employees launched “Blizzard,” a venture capital and incubation focused on AVAX, reported Andrew Thurman of CoinDesk. The fund raised $ 200 million in an initial investment that included participation from the Avalanche Foundation, Ava Labs and Polychain Capital, among others. The fund will invest in early stage projects across the Avalanche ecosystem, including decentralized finance, non-fungible tokens, social tokens and more.

DeFi Startup Notional Launches V2 Upgrade: Fixed-rate cryptocurrency lending startup Notional has launched its V2 upgrade in an effort to strengthen its presence in Decentralized Finance (DeFi), Eli Tan reported from CoinDesk. The company said the new iteration of its platform has improved security and liquidity. Notional, which closed a $ 10 million Series A funding round in April, offers fixed-rate debt using a chained automated market maker (AMM) to allow users to borrow USD coins (USDC) and DAIs for up to one year and bitcoin (wBTC) and ether (ETH) for up to six months.

SQUID Token Developers Leave Project After Token Crash: Developers behind a play-to-win SQUID token inspired by Netflix’s “Squid Game” show left the project after the price fell to near zero, CoinDesk’s Muyao Shen reported. The project rose in popularity instantly after its release and grew by over 35,000% in just three days despite multiple red flags. At the time of going to press, the project’s official website and account on Medium were down and the account was temporarily restricted by Twitter for “unusual activity”.

Relevant news Other markets

Most of CoinDesk 20’s digital assets ended the day higher.

Notable Winners at 9:00 p.m. UTC (4:00 p.m. ET):

Polkadot (DOT): + 16%

Chain link (LINK): + 5.25%

Aave (AAVE): + 4.36%

Uniswap (UNI): + 4.2%

Notable losers:

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