The price of the world’s leading cryptocurrency, Bitcoin (BTC), hit $14,000 on October 31. Significantly, Bitcoin creator Satoshi Nakamoto released the BTC whitepaper in 2008. After that historical year, BTC is called a significant cryptocurrency as it witnessed a remarkable and exponential rise.
BTC has the 12th anniversary and is particularly noteworthy for dominant cryptocurrency as it marks the third post-halving cycle.
BTC undergoes a block reward halving every four years, which cuts the rate at which new Bitcoin is mined by half. The reason for it is that 21 million Bitcoin can ever exist on the blockchain. Therefore, as BTC nears its fixed supply, the rate of production reduces.
Historically, a halving has had a positive influence on Bitcoin’s price. It decreases the pace a new Bitcoin supply is introduced to the market. Therefore, there is less Bitcoin flowing into the exchange market every four years.
Additionally, the 4th, 8th, and 12th anniversary of Bitcoin are more noteworthy than other anniversaries for this reason. It coincides with a post-halving cycle, while the latest halving happened in May 2020.
Remarkably, the Bitcoin price has seen a massive rise during the prior years. For instance, in 2013, its cost was $204, while in 2014, it hit $338. For 2017, BTC sharply increased and reached $6,468.
BTC witnessed an immediate rejection after hitting $14,100
On October 31, 2020, Bitcoin price hit a peak of $14,100; however, witnessed an immediate rejection. Most massive selling pressures came from Binance, which caused the price to drop by 3% in minutes.
Before the rejection, massive buy walls on Huobi and Binance initially drove BTC upwards. While the price stood at $13,680, there was a 1,371 Bitcoin buy wall on Binance.
According to a pseudonymous BTC trader know as CL, it was the most significant buy wall on Huobi he has seen in years. However, as BTC hit $14,000, traders on Binance started to sell large amounts of BTC. Before the BTC increase to $14,100, Keith Wareing, tech investor, and Cointelegraph Markest contributor, made a statement where she said that Bitcoin would be rejected at $14,000 and go back under the 2019 high.
Bitcoin is likely to stabilize and consolidate after such massive volatility. Considering that $14,000 is a crucial resistance level, BTC is expected to reduce below $14,000 and continuously strive to break out.
Ki-Young Ju, the CEO of CryptoQuant, made a statement, according to which the trend is considered a long-term buy signal. The shortage of intent to sell from investors on an exchange means that a prolonged uptrend is expected.