The Bitcoin price surged above $19000 for the first time since 2017. Indicators suggest that the Bitcoin bull run may continue. In fact, there are 3 main reasons for this price surge. These three factors consist of whale accumulation, decreasing in Bitcoin supply and increase in volume. Here we are going to explain 3 reasons why Bitcoin surged to $19K.
Whales keep accumulating Bitcoin
In fact, whales bought Bitcoin at lower prices, and they are just accumulating the coins and do not move them. It shows that whales do not wish to sell their coins. In simple words a whale clusters were constantly and gradually forming.
The recent price movement is different from the previous ones. In fact, it shows signs that is more sustainable. The reason is that whale accumulation usually reclaimed the major support level BTC.
It was on Nov. 18 that Bitcoin price fall into $17200. At that time, analysts at Whalemap stated that the new whale support is at $16411. In fact, they believe bubbles show the price, which whales purchased BTC that they currently accumulated. In addition, bubbles indicate support levels.
The difference between the ongoing 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 level BTC reclaimed was accompanied by whale accumulation.
Bitcoin experienced several price falls below $18000 but very soon recovered above $18800. It shows that the momentum is strong.
Furthermore, the data and statistics from Santiment show that the number of Bitcoin whales with at least 10000 coins increased to 114 for the past two days.
Bitcoin’s supply is decreasing
The Bitcoin exchange reserve is decreasing continuously throughout the 2020 bull cycle. In fact, the whales and investors move their BTC into exchanges when they have intention to sell them. As a result, the recent drop in exchange reserve shows that the amount of seller in the market dropped dramatically.
3 Reasons Why Bitcoin Surged To $19K; The volume is increasing
Since September, the volume of both spot exchanges and institutional increased significantly. In November, the open interest on Bitcoin options and futures increased over $1 billion. In addition, Binance’s BTC/USDT pair distributed more than $1.5 billion in daily volume.
Furthermore, various data points show that the spot market is experiencing a rally, not future markets or derivatives. As a result, it makes the rally sustainable and decrease the risk of massive corrections.