13/11/2020
Bitcoin price surged past $16,000 for the first time in nearly three years, its momentum strengthening due to three main factors.
The price of Bitcoin (BTC) surged past $16,000 today, Nov. 12, for the first time in nearly three years. The momentum of the dominant cryptocurrency is strengthening due to three key major factors.
The main catalysts behind BTC’s rally are the non-overheated derivatives market, repeated retest of $16,000, and the $14,900 whale supply zone.
The recent dip reset the Bitcoin derivatives market
On Nov. 10, the price of Bitcoin abruptly declined to as low as $15,072. The market drop occurred merely 24 hours after it saw another major dip to $14,805, which turned traders cautious.
But the drop benefited Bitcoin for two key reasons. First, it allowed whales to take profit on their positions at around the $15,000 support level. Second, it neutralized the futures market by flushing out late buyers or long contract holders.
Resetting the futures market and the funding rate for Bitcoin futures contracts was critical for sustaining the ongoing BTC rally.
Despite extreme market volatility influenced by macro factors such as Pfizer’s vaccine development, Bitcoin comfortably remained above $14,900. The trend has shown that it has become a stable support level for BTC.
Cameron Winklevoss, the billionaire co-founder of major Bitcoin exchange Gemini, emphasized the importance of BTC holding above the $14,900 to $15,000 support range. He said:
“Bitcoin closed yesterday above $15,000 for the third day in a row. This is the first time in history that Bitcoin has held this price level for 72 hours. A new record.”
