The price of Bitcoin (BTC) hit a new annual high of $ 16,717 on Binance. After the separation, Traders expect a bigger rally in the short term.
There are several reasons why analysts expect the upward trend to continue. First, Bitcoin cleanly surpassed $ 16,000 and eliminated the high of $ 16,473 hit on November 13. Second, a “sell-side crisis” is brewing as more BTC accumulates than is mined. Third, BTC rebounded despite indicators showing signs of overbought.
Top analysts were wrong about a Bitcoin correction
Early today John Bollinger, a veteran trader and inventor of the Bollinger Bands indicator, said he was wrong about a bitcoin correction.
On November 10, Bollinger said Bitcoin was showing a “short-term ceiling pattern”. At this moment Bollinger wasn’t sure if this would lead to a correction or consolidation, but said he expected the market to cool.
Several analysts expected Bitcoin to decline, particularly towards the end of the weekly candle. However, BTC continuously recovered and saw increasingly intense momentum. Bolinger said::
“It seems I was wrong about the possibility of a correction. We just have a little consolidation and then back to racing. Such discontinuous setups are a sign of strength that the path of least resistance is currently up. #BTC “
Derivatives traders have also indicated that a decline in Bitcoin supply creates a crisis on the sell side.. This trend could cause BTC to rebound despite testing key support levels.
A futures and options trader known as “Light” stated that around 3,000 BTC has been withdrawn every day since BTC hit $ 10,000. This trend shows that the demand for Bitcoin is high and miners are refusing to sell BTC, which is optimistic for BTC. The dealer said::
“Now at USD 16,600 from USD 11,000. Since the $ 10,000 breakout, ~ 3,000 net BTC has been withdrawn from major centralized BTC exchanges EVERY DAY … miners refuse to sell their recently halved bounties against demand and are well above balance. “.
The BTC price responds positively to the advancement of today’s vaccine
On November 12, when Pfizer announced a highly effective vaccine against the coronavirus, the price of Bitcoin dropped almost 3% in a matter of hours.
This time, Bitcoin is actually up nearly 5% following the highly anticipated release of Moderna’s vaccine results. During the same period, gold struggled, only gaining 0.17%.
But, Traders say if Bitcoin falls like November 12th it would provide an opportunity to buy the dip.. A popular cryptocurrency trader named Hsaka said::
“The last time we had vaccination news, $ BTC followed the Stonks in the first rally but eventually succumbed to the drop of gold. Probably worth buying when history repeats itself and the opportunity presents itself. “
The combination of technical dynamics, a sell-side crisis, and the dynamism of the rally keeps BTC stable above $ 16,000. Given that BTC has not declined quickly after its boom, there is a strong case that $ 16,000 is proving to be a reliable area of support.