For the first time in the last three years, Bitcoin achieved a feat that it just stared at from a distance in those years. The leading digital asset saw the bulls take charge to drive its price to $18,815. After the new price range, analysts and experts in the market have pointed at four key reasons why Bitcoin could hit another all-time high record in the next few weeks before the month-end.
Talking about the key factors that might encourage the bulls to take Bitcoin along to the top, analysts have mentioned the decline in selling pressure, ever-present institutional demand, a market rally driven by the spot markets breaching of the next resistance figure set at $18,500.
Increased institutional demand and reduced selling pressure
One thing that has been the norm over the years since Bitcoin was created is that the asset holder needs to deposit their Bitcoin in exchanges before selling. One key event that signals that the market’s sell-side pressure is low is Bitcoin’s drop in crypto exchanges’ reserves.
Data published by Glassnode points out that the total number of Bitcoin on crypto exchange has dropped drastically by 18% in its year to date balance. Another thing is that Bitcoin’s liquidity is still going in a declining trajectory. This is one very important trend because it shows that traders are not ready to sell Bitcoin even after the success that the coin has witnessed since march, after moving from $3,500 to its current price of $18,700.
Mike Novogratz, a billionaire and Bitcoin proponent told journalists that Bitcoin can now be seen as an institutional asset after Rick Reider of BlackRock talked about it on CNBC. In the interview, Reider mentioned some important things about Bitcoin and stressed that the digital asset is here and will only evolve as the years roll by.
Furthermore, Reider noted that the elites were already looking to the asset, which increased the digital asset’s chances of being used for digital payments in the coming years. In his evaluation of Bitcoins price next year, Novogratz backed the coin to have a much better year than 2020.
Spot market rally and $18,500 resistance breakout
The Bitcoin market was alarmed after Light, a derivatives trader in the market, mentioned that he saw signs of sell-side liquidity from the asset. One distinctive pattern visible in the market is the lack of sellers, which has been one reason for the coin’s performance. Furthermore, analysts mentioned that this selling pressure has been declining, especially after the halving in May.
In addition to the absence of sellers in the market, analysts have pointed out that the spot market is currently ahead of the derivatives market. Bitcoin also registered a sharp decline on November 18, after its price move to the $17,200 region from the $18,500 region. However, the market has broken above the $18,500 for the second time, a move that shows that Bitcoin has all the momentum to break above the resistance figure and make a new all-time high record.