Bitcoin’s real hurdle is $20,000 – and that’s where the whales are waiting
The actual hurdle that Bitcoin (BTC) has to overcome is $20,000 – close to its all-time high. Although the record high is different on the major stock exchanges, BTC has already reached the highest price on some exchanges.
Bitcoin’s weekly price chart.
However, whales have not withdrawn BTCs from the stock markets to the same extent as in recent months. In addition to this trend, inflows of Stablecoins have also Bitcoin Era slowed. The combination of these two trends could result in
BTC’s withdrawal being close to $20,000.
Bitstamp just hit it https://t.co/GuifGm8Pcz pic.twitter.com/8yPMPOFo5X
– Dan McArdle (@robustus) November 30, 2020
In the short term, $20,000 could be a difficult level to break through. This could result in a new range between $19,400 and $20,000.
The variable will remain if there is enough buyer demand to go above $20,000. Whales tend to sell when there is peak liquidity in the market.
So if whales sell, BTC could see a withdrawal near or above its all-time high. Ki Young Ju, CEO of CryptoQuant, said:
„I talked about short-term bear market due to miner sales, whale activity on the exchanges and lack of whale withdrawals. But I knew that enough Stablecoin reserves on the exchanges would break $20,000 by this year. If ATH were to be denied, this could be a huge withdrawal as the whales would sell BTC heavily“.
Shortly after Bitcoin surpassed $19,800 on Coinbase and other exchanges, BTC saw a strong sell-off to about $19,100 – as Ki had predicted.
However, if Bitcoin exceeds $20,000, this would mean that Bitcoin would enter the pricing process.
Background: In technical analysis, the term „pricing“ refers to a scenario where the price of an asset reaches a new peak. As there are no historical levels of resistance, this would allow Bitcoin to look for a new ceiling.
There is therefore no specific peak that Bitcoin looks at when it exceeds $20,000. The options market seems to expect a range of $36,000 to $50,000 as the next peak for BTC.
With a BTC above $19,500, the entire circulating Bitcoin supply is profitable, indicating the strength of the current bull run.
100% of the circulating #Bitcoin supply is in profit.
Chart: https://t.co/wDpd4s3BKJ pic.twitter.com/8vkssXJkYw
– glassnode (@glassnode) November 30, 2020
What will Bitcoin hold over $20,000?
There was a lot of selling pressure and short selling at around $19,800. Considering that short selling turns into buyer demand when short sellers close their positions, this could push BTC further up.
Cantering Clark, a technical analyst, explains
„Large volumes of sales have just come in, it’s enough to push us upwards.“
Analysts have also put forward the theory that as Bitcoin continues to rise during the US hours, institutions will buy BTC using the Time-Weighted Average Price (TWAP) algorithm.
If this trend continues, it could create systematic buyer demand for BTC in the near future. Institutional demand has continued to grow after high-profile investors such as Paul Tudor Jones invested part of their capital in Bitcoin.