Sam Trabucco, a dealer of Alameda Research, believes that Four general factors drive the price of Bitcoin (BTC) up.
Catalysts increase adoption, whales, other product flows to Bitcoin and the influence of other markets.
Alameda Research is a major cryptocurrency company trading between $ 600 billion and $ 1.5 billion per day, enabling trading in a wide variety of cryptocurrencies and derivatives.
Accumulation and general acceptance are increasing
Cointelegraph continued to report on this last month the trend of the accumulation of whales.
Groups of whales form when whales buy bitcoin and don’t sell it right away. This generally indicates that the whales bought BTC, sent it to their personal wallets, and didn’t move their money.
Whales’ bitcoin hoarding may have been linked to a decline in profit-taking in the altcoin market. Specifically, As the decentralized finance (DeFi) market fell back, Bitcoin continued to see a significant rally.
Based on various trends and data points, Trabucco said The four factors above have likely contributed to Bitcoin’s rally over the past few months. Wrote ::
“So, first of all, why ‘on’? There has been a lot of talk about it – some of the reasons for the rise in BTC that I have postulated are a lot of institutional purchases, increased adoption, “whales”, erratic product exits back to BTC, influence from other markets, etc. “
In addition to these factors Cointelegraph reported that Bitcoin foreign exchange reserves are also falling rapidly.
The reserves of the Bitcoin exchanges fall as investors increasingly withdraw their money from the exchanges. Since investors often deposit cryptocurrencies on exchanges to sell them, This trend suggests that there are fewer sellers in the market and less BTC is available.
If positive technical and fundamentals coincide with an overall decline in selling pressure, it could boost momentum around Bitcoin.
Macro influence could also favor Bitcoin
According to Trabucco Joe Biden’s planned victory and the prospect of vaccines against Moderna and Pfizer are positive factors for Bitcoin.
Support for Bitcoin from various tech companies, including PayPal, banks, politicians, wealthy investors, and billionaires, is likely to drive the price of BTC higher, the trader argues. He commented:
“My opinion would be: It’s probably a combination. I think Biden’s win and vaccines, for example, were downright good for SPY, which has a short-term and long-term correlation with BTC in the COVID era that helped. And there are also plenty of legitimate traditional companies / entities – banks, hedge funds, random wealthy people, opinion leaders, tech companies, Wyoming senators, etc. that suggest support for BTC that is both direct (buying) and indirect (sentiment) affects its price. “
Short term, The hurdle for Bitcoin remains the resistance area of $ 18,500. Above that, there is little resistance to a new all-time high after which BTC would enter the uncharted waters of pricing.
Considering the fact that the bull run after the halving lasted 15 months after the 2016 halving, There is a high probability that Bitcoin will peak in mid to late 2021, as some analysts believe.
If so, Bitcoin’s medium-term outlook remains positiveespecially given that many macroeconomic and technical factors are driving market confidence.