Market Wrap: Bitcoin Bounces From $13.2K; Ether on Centralized Exchanges at 2-Year Low

Nov 2, 2020 at 21:35 UTC.Bitcoin opened the week recovering from a dip while ether balances on centralized exchanges fell.

Bitcoin trading around $13,673 as of 21:00 UTC. Slipping 1.2% over the previous 24 hours.

BTC above its 10-day but below the 50-day moving average, a sideways signal for market technicians.

Bitcoin's price dipped as low as $13,221 at around 12:00 UTC, according to CoinDesk 20 data.

"It's interesting to see that today, as the S&P and gold price rose, BTC dropped in today's market open," said Andrew Tu of Efficient Frontier, a crypto quant trading firm.

"In recent weeks, we have been seeing BTC price diverge from the equities market."

Bitcoin's 90-day correlation, where zero means no mutual relationship, has been dropping since Oct. 18."If this becomes a long-term trend, this could be a very positive sign for BTC should the equities market continue to correct over the medium to long run," Tu added.

Bitcoin volumes for Monday on major spot exchanges totaled $490 million as of press time, much higher than the past month's average of $257 million and closing in on this past Monday's $502 million total.

"Most investors remain prudent and don't want to take a bet on an event whose outcome is binary: Will there be panic selling or a relief rally on Nov. 4?".Options traders see a 51% chance bitcoin is over $13,000, a 42% probability of the price of BTC over $14,000 and a 27% chance of surpassing $15,000 for November expiration.

Ether, the second-largest cryptocurrency by market capitalization, was down Monday, trading around $387 and slipping 1.8% in 24 hours as of 21:00 UTC.The amount of ether in reserve, or held by major centralized exchange addresses, a metric calculated by data aggregator CryptoQuant, has dropped to 11,628,046 ETH, a low not seen since Aug. 14, 2018.One factor for the decline, according to Denis Vinokourov, head of research at digital asset prime broker Bequant, is the rise of decentralized exchanges, or DEXs, and the proliferation of liquid cryptocurrency pairs on those venues.