Bitcoin (BTC) was priced above $ 17,000 for the first time since December 2017and continues its current upward trend. The rally comes after BTC breaks the previous parable, which was initially a cause for concern.
Three factors are likely to contribute to the ongoing rally: a new parabolic trend, Resistance over $ 16,000 Y. Bitcoin is absorbing the selling pressure from whales.
New parabolic trend
November 16th Cointelegraph reported that analysts found the price of Bitcoin fell below a September parabola.
Although the trend seemed worrying, New parabolic trends could reappear in an upward cycle. When BTC fell under the parable, some analysts said that BTC could form a new parabolic uptrend.
When Bitcoin breaks out of a parabola and enters a short-term bear cycle, The price drops quickly and can correct up to 80%. In the case of BTC in the past few days, remained stable above $ 16,000.
Bitcoin’s stability reduced the likelihood of a sharp short-term decline, which ultimately led to a rebound in BTC.
Resilience above $ 16,000 was key
Maintaining Bitcoin’s stability above $ 16,000 after its initial drop to $ 15,800 on Nov. 16 was key to the recent rally.
There was a heated discussion about whether Bitcoin could suffer a profound correction in the short term. Gold fell, for exampleas the results of the Moderna vaccine study were positive. BTC saw a huge resistance value of $ 17,000 due to chain ordersmaking it difficult to overcome this area.
However, Bitcoin’s momentum was just too strong to avoid a massive rally. If BTC showed stability after the first breakout of the parabola, Traders said the technical pattern is bullish.
The trends that normally occur during bull cycles are also showing up again. According to the chain analysis company In the block99% of addresses with Bitcoin are profitable. From the company they commented:
“About 99% of the addresses that currently have BTC are making a profit. There are only 164.11 thousand addresses who bought 44.91 thousand BTC and still run out of money. We could soon see 100% profitability for every bitcoin holder. “
Some might argue that this metric suggests that many investors are making a profit and therefore could create a pullback. But, as Bloomberg reports, That recovery has been largely silent in terms of majority ownershipThis makes a sudden increase in profits less likely.
Bitcoin held back the pressure to sell from the whales
In November Cointelegraph reported that whales and miners were selling large amounts of Bitcoin. This meant that Bitcoin has had significant selling pressure over the past month.
However, despite immense sales pressure from the whales, the price of BTC was still $ 17,000.
November 15th Cointelegraph also reported that a whale either short-circuited or sold $ 100 million worth of Bitcoin on Bybit.
At the time, the price of Bitcoin was trading just under $ 16,000, around $ 15,900. The recent price surge above $ 17,000 suggests that many whale sales or short sales have likely declined in the past few days.
The combination of Bitcoin’s resistance, the creation of a potentially new parabolic trend, and BTC’s maintenance of the forest pressure makes the medium-term outlook for BTC optimistic.