Earlier today, Bitcoin’s price hit $ 18,980 for the first time in nearly three years. There are a number of factors that indicate that it should not take long to set a new record.
The factors we are talking about are: Growing institutional demand, reduced selling pressure, a spot-driven rally and the importance of the $ 18,500 resistance breakthrough.
Bitcoin is seeing reduced selling pressure
If investors want to sell their Bitcoin, they must first deposit their BTC tokens on exchanges. If this happens less than usual, the exchanges’ BTC reserves will drop. This indicates that there is low selling pressure in the market.
According to data from Glassnode Bitcoin balance on exchanges has fallen 18% since the beginning of the year. This is important as it indicates that investors do not intend to sell their Bitcoin tokens in the short term. They prefer to wait for the price to rise further.
From now until December 10, crypto exchange Bybit gives all new and existing users bonuses up to $ 500! Click here.
Institutional demand is growing
Another important factor is growing institutional demand. Rick Reider, of BlackRock, spoke positively of the digital currency. He said Bitcoin has the potential to become massive. He suggested that millennials prefer BTC and the growing reality is that digital currencies will become mainstream payment options.
Given the institutional trends, Novogratz said that 2021 would likely be as good or better than 2020 for Bitcoin. He said:
“Bitcoin is now an institutional asset. Point. The good thing is that most institutions are not yet participating. That is why 2021 will be just as good or better than 2020 for BTC. ”
Maintaining USD 18,000 in support is critical
On November 18, the Bitcoin price crashed from $ 18,500 to about $ 17,200 minutes after hitting its two-year high.
The sharp rejection on that day showed that large volumes of sell orders were submitted above the $ 18,500 level. Today’s second breakout above USD 18,500 confirms that there is enough momentum in the market to break critical multi-year resistance levels and turn them into support.
Based on the aforementioned factors and the fact that the central bank’s global policy is to continuously print extra money, which causes inflation, Bitcoin remains likely to hit a new high soon.