Bitcoin (BTC) price surpassed $ 17,000 for the first time since December 2017, continuing its current upward trend. The meeting comes after BTC broke off the previous floor, which originally sparked concern.
Three factors may have contributed to the steady rise: a new trend of satellite dishes, $ 16,000 resilience, and Bitcoin absorbing whale selling pressure.
New satellite dish trend
On November 16, Cointelegraph reported that analysts had found that the bitcoin price had fallen below the parabola dating back to September.
Although the trend looked worrisome, new parabolic trends could return in a bullish cycle. As such, when BTC fell below the parabola, some analysts said that BTC may form a new parabolic trend.
When bitcoin exits the parabola and enters a short-term bearish cycle, the price drops rapidly and can retrace up to 80%. As for BTC in recent days, it has remained stable above $ 16,000.
Bitcoin’s stability reduced the likelihood of a sharp downturn in the short term, and ultimately led to BTC rally.
Resistance over $ 16,000 was key
Bitcoin, which maintains stability above $ 16,000 after the first fall to $ 15,800 on Nov. 16, was the key to the recent rally.
It was a powerful story for Bitcoin to see a deep correction in the short term. Gold, for example, is down as Modern’s vaccine trials have tested positive. BTC saw a significant resistance level of $ 17,000 due to orders in the chain, making it hard to surpass it.
However, the driving force behind Bitcoin was simply too strong to avoid a massive rally. When BTC showed stability after the first plate outbreak, traders said the technical pattern is optimistic.
Trends that typically occur during Taurus cycles also begin to emerge again. According to chain analysis firm Intotheblock, 99% of addresses containing Bitcoin are profitable. The company said:
“Nearly 99% of addresses that currently have BTC experience earnings. Only 164.11 thousand addresses that have bought 44.91 thousand Bitcoins are still out of the money. We may soon see 100% profitability for every Bitcoin owner.”
Some would argue that this account indicates that many investors can make money and thus pay off. However, according to Bloomberg reports, the rally was largely muted in terms of regular engagement, making the windfall meeting less likely.
Bitcoin has held back pressure to sell whales
During November, the Cointelegraph reported that whales and miners were selling large quantities of Bitcoin. This means that there has been significant sales pressure on Bitcoin in the last month.
However, Bitcoin is still worth $ 17,000 despite the massive sales pressure exerted by the whales.
On November 15, Cointelegraph also stated that the whale either short-circuited or sold $ 100 million in Bitcoin on Bybit.
At the time, the bitcoin price was trading under $ 16,000 to around $ 15,900. The recent spike above $ 17,000 indicates that many whale sales or short orders are likely to be driven in recent days.
The combination of Bitcoin’s resilience, the emergence of a potential new satellite dish trend, and BTC limiting whale pressure makes BTC’s outlook optimistic over the medium term.