Bitcoin Rallies to $14,000 as Crypto Enthusiasts Celebrate 12th Anniversary of Bitcoin’s Whitepaper Release
Bitcoin (BTC) crossed above $14,000 on the last day of October. Interestingly, Satoshi Nakamoto published the whitepaper of the numero uno crypto on the same day twelve years back.
Since then, the king of crypto has seen extraordinarily fast growth in terms of price, while the crypto sector has gone through huge technical advancements.
Bitcoin is currently in a completely different orbit compared to where it was 12 years back, when the white paper was published.
Bitcoin’s rally is now led by institutional purchases as several financial institutions have started backing cryptocurrencies, and the market has turned liquid in an increasing manner.
The 12th anniversary of Bitcoin whitepaper is specifically distinct for the crypto because it represents the developments that followed the third halving event. It is a known fact that Bitcoin goes through a block reward halving event once in four years, causing a 50% reduction in the quantum of freshly mined Bitcoin.
The entire Bitcoin blockchain has been structured in a way that only 21 million Bitcoins can be ever mined. As Bitcoin moves towards the pre-determined quantity of supply, the rate of generation declines.
Historically, halving had a positive effect on Bitcoin’s price. As the rate of creation of new Bitcoin reduces, subsequently, once in four years, the quantum of Bitcoin entering the crypto exchange will continue to decrease.
In this regard, the 4th , 8th and 12th anniversary of Bitcoin have more credibility than other anniversaries as it falls in line with post-halving cycle. The most recent halving occurred in May 2020.
— Hsaka (@HsakaTrades) October 31, 2020
Over the past ten years, the price of Bitcoin have gone through considerable change on “whitepaper day.” For illustration, seven years back, Bitcoin price only $204. In 2014, it hit $338. A year later it declined to $314. In 2016 and 2017, the price hit $700 and $6,468, respectively. Furthermore, in 2018 and 2019, the cryptocurrency hit $6,317 and $9,199.
In all majorly tracked cryptocurrency exchanges, the price of Bitcoin hit a price of $14,100, but faced selling pressure at that level. Binance witnessed the maximum selling pressure, causing the price to decline sharply by 3% in a matter of few minutes.
Before the retracement, strong buy walls on Binance and Huobi provided the necessary momentum to propel Bitcoin (BTC) upwards. On Binance, there was a buy wall made of 1,371 Bitcoin a $13,680, while on Huobi the support wall pattern had been created at $13,800 level.
biggest buy wall on Huobi ive seen in a long time @ 13820 pic.twitter.com/7OwZO9wxQc
— CL (@CL207) October 31, 2020
A Bitcoin trader, represented by pseudonymous name “CL” revealed that it was the “biggest buy wall on Huobi I’ve seen in a long time.”
However, as Bitcoin eclipsed $14,000, Binance traders started diluting huge quantities of Bitcoin in a short span of time. Even before the Bitcoin’s uptrend to $14,100, tech investor and Keith Wareing, a content provider to Cointelegraph Markets, wrote:
“Sadly, Bitcoin will rejected at $14k and go back below the 2019 high thanks to binance whales.”
A “darth maul candle” pattern is created when the price of Bitcoin skyrockets and retraces sharply due to selling pressure. Usually, a surge in volatility is followed by period of relative calmness leading to consolidation of Bitcoin.
As $14,000 is a proven major resistance, Bitcoin is widely expected to trade closely below the resistance level and continuously attempt to break above that level.
On-chain market data provider CryptoQuant has been regularly pointing out that Bitcoin deposits in cryptocurrency exchange is on a decline. That usually indicates a drop in selling pressure, specifically among whales and retail investors.
As per Ki Young Ju, CEO of CryptoQuant, the trend is perceived as a “long-term buy signal.” The disinterest shown by investors to dilute their holdings indicates that an extended uptrend is highly possible.
Long term buy signal https://t.co/jfBlhET560
— Ki Young Ju 주기영 (@ki_young_ju) October 31, 2020
The 12th anniversary is seeing a convergence of solid fundamental, technical factors in addition to bullish view of Bitcoin.