For the first time since 2017, the Bitcoin price has risen to over $ 19,000. Many indicators suggest that the rally will continue.
Bitcoin ( BTC ) price hit the $ 19,000 mark on November 24 for the first time since the historic rally in December 2017. There are three main reasons for this strong momentum in the largest cryptocurrency.
The main factors driving this current rally are whale accumulation, falling stock market supply and explosive volume development.
Whales are still accumulating bitcoin
Throughout November , Cointelegraph reported that whale clusters were constantly forming as the Bitcoin price rose.
These clusters arise when Bitcoin whales buy BTC at a certain rate and don’t move it. Analysts have interpreted this as a signal that the whales are accumulating and not wanting to sell in the near future.
The difference between the current Bitcoin rally and previous price cycles is that the recent uptrend has proven to be more sustainable. In fact, every whale cluster shows that every major support BTC has been able to secure has been accompanied by whale accumulation.
On November 18, when Bitcoin fell to $ 17,200, analysts at Whalemap said the new whale support is at $ 16,411. They said :
„Bubbles show the rates at which the whales bought BTC, which they are currently holding. Bubbles also visualize support levels. Last time there was a rebound from $ 15,762 to $ 15,762 and price growth of 15 percent. Will the new bubble hold at $ 16,411 this time around? “
Since then, Bitcoin has seen several declines below $ 18,000 but has since rebounded to over $ 18,800 and maintained its strong momentum.
In addition, data from Santiment, an on-chain market analysis platform, shows a similar trend. Mood researchers found that the number of BTC whales has increased significantly in recent months. They stated :
„The number of # Bitcoin whales with at least 10,000 coins (currently 185 million US dollars or more) has risen to 114 in the last few days. The prices have risen to over 18,000 US dollars. In addition, the number of Owners with at least $ 1,000 BTC ($ 18.5M) hit an all-time high of 2,449! „
Bitcoin supply is decreasing
One trend that has persisted in this bull cycle of 2020 is the continuous decline in Bitcoin exchange reserves.
Investors and whales deposit BTC on exchanges when they want to sell BTC. Hence, the recent decline in stock market reserves means there are fewer sellers in the market.
The trader „Byzantine General“ said that every time the spot exchanges increase their BTC reserves, they are accumulated. He said :
„Every time the spot exchanges top up their $ BTC reserves, they are bought up almost instantly. Don’t you get it? There is literally not enough supply.“