Bitcoin, the world’s dominant cryptocurrency, price increased to a new yearly high and settled at $16,717 on Binance. According to traders, a larger rally will occur in the near term.
Remarkably, there are different reasons why analysts foresee a prolonged uptrend:
- Bitcoin broke out of $16,000, taking out the $16,473 peak hit on November 13.
- A sell-side crisis brews as more Bitcoin is accumulated than mined.
- Bitcoin rallied despite signs pointing overbought signals.
A veteran trader and the creator of the Bollinger Bands indicator, Josh Bollinger made a statement earlier today, according to which he was wrong about a BTC correction. Furthermore, Bollinger announced on November 10 that the dominant cryptocurrency is showing a short-term topping pattern.
Bollinger was uncertain if this would lead to a correction or consolidation, but he stated he anticipated the market to stabilize.
Additionally, various analysts expected Bitcoin to decline, especially as it nears the weekly candle close. BTC continuously rallied, seeing intensifying momentum.
A veteran trader announced that he was wrong about the chance of a correction, as all we got was a bit of consolidation and then back to the races.
Besides, derivatives merchants have also designated to the falling Bitcoin supply leading to a sell-side crisis. This trend might be causing Bitcoin to rally even as it tests significant support levels.
A pseudonymous futures and options trader, Light, announced about 3,000 BTC had been withdrawn since Bitcoin reached $10,000. According to this trend, the demand for the dominant cryptocurrency is high, and miners refuse to sell Bitcoin, which is positive for BTC.
After the vaccine, BTC saw a 3% reduction
We all know that on November 12, Pfizer announced a covid-19 vaccine, which is highly effective. After that price of Bitcoin declined by approximately 3% during a few hours.
Another essential thing to mention is that Moderna Inc, a biotech company, announced its vaccine results. The results, lifted BTC prices by approximately 5%. Meanwhile, gold gained 0.17%.
According to traders, if the dominant cryptocurrency declines as it dropped on November 12, it would present a dip-buying opportunity.
The combination of a sell-side crisis, technical momentum, and the rally’s sheer momentum helps Bitcoin remain stable up to $16,000.
As the world’s largest cryptocurrency did not decline immediately after its upsurge, there is a powerful argument that $16,000 is turning into a vital support area.