That is why the Bitcoin exchange rate rose to 19,000 US dollars for the first time in three years
For the first time since 2017, the Bitcoin exchange rate has risen to over 19,000 US dollars. Many indicators suggest that the rally will continue.
On November 24, the Bitcoin (BTC) price reached the $19,000 mark for the first time since the historic rally in December 2017. There are three main reasons by Bitcoin Loophole for this strong momentum in the largest crypto currency.
The main factors driving this current rally are whale accumulation, declining stock supply and explosive volume growth.
Whales still accumulate Bitcoin
Throughout November, Cointelegraph reported that whale clusters were forming steadily as the Bitcoin price rose.
These clusters form when Bitcoin whales buy BTCs at a certain price and do not move them. Analysts have interpreted this as a signal that the whales are accumulating and do not want to sell in the near future.
The difference between the current Bitcoin rally and previous price cycles is that the recent uptrend has proven to be more sustainable. In fact, each whale cluster shows that every major support BTC has been able to secure has been accompanied by whale accumulation.
On November 18, when Bitcoin fell to $17,200, analysts at Whalemap said the new whale support was $16,411. They said:
„Bubbles indicate the prices at which the whales have bought BTCs that they currently hold. Bubbles also visualize the support levels. Last time there was a rebound from $15,762 to $15,762 and a price increase of 15 percent. Will the new bubble hold at $16,411 again this time?“
Since then, Bitcoin has seen several declines below $18,000, but has since recovered to over $18,800 and maintained its strong momentum.
In addition, data from Santiment, an on-chain market analysis platform, shows a similar trend. Mood researchers have noted that the number of BTC whales has increased significantly in recent months. They explained:
„The number of #Bitcoin whales with at least 10,000 coins (currently $185 million or more) has increased to 114 in the last few days. The courses have risen thereby to over 18,000 US Dollar. In addition, the number of owners with at least 1,000 $BTC (18.5 million US dollars) has also reached an all-time high of 2,449!“.
One trend that will continue in this 2020 bull cycle is the steady decline in Bitcoin exchange reserves.
Investors and whales deposit BTC on exchanges when they want to sell BTC. Therefore, the recent decline in exchange reserves means that there are fewer sellers in the market.
The trader „Byzantine General“ said that every time the spot exchanges increase their BTC reserves, they accumulate them. He said to this:
„Every time the spot exchanges increase their $BTC reserves, they are bought up almost immediately. Don’t you understand that? There is literally not enough supply.
Volume is rising sharply
The volume on institutional and spot exchanges has increased rapidly since September. Open interest in Bitcoin futures and options on the CME exceeded $1 billion in November. The BTC/USDT pair on Binance has a daily volume of over USD 1.5 billion across the board.