Bitcoin Finally Hits the Sweet $16,000; BTC Price of $20k Is Inevitable
Bitcoin is back on the move!
Today, BTC finally hit $16,000 for the first time since January 8, 2018.
“Big green candle. 16k breached. 20k is inevitable,” as tweeted by Samson Mow, CSO of Blockstream is the market's current mood.
The digital asset price went as high as $16,177 on Bitstamp but is currently trading back around $15,895 on the back of a $3.7 billion volume.
Bitcoin first made it to nearly $16,000 last week, which has been for the first time in about 3 years. This led to the correction to $14,330 on the weekend. This week, we again made a couple of attempts to take over this level but only to see small dips.
Today, we did break the sweet $16k level, but we are retracing a bit for now.
But it’s worth noting that Bitcoin hasn’t given any big pullbacks yet despite surging about 39% in the last month. And if $16,000 gets run-over with a strong move, it is a very real possibility that a new all-time high will be made shortly.
“If bitcoin goes above 16k again, it’s almost definitely mooning,” noted trader CryptoGrainz.
this might be me going full retard – but I think we can get a blow off to 19k today lmao
— CryptoGainz (@CryptoGainz1) November 12, 2020
According to the on-chain analyst Willy Woo, we are just at the start of the main bull run as per BTC's on-chain Relative Strength Index, which has just started warming up.
Amidst the strong price action, a record amount of money flows into CME’s bitcoin futures contracts. The open interest on CME’s BTC futures contracts has gone above $900 million, with the number of large traders the main driver behind this.
As per the COT report, almost 100 large traders hold the BTC contracts on CME, at least 5 futures contracts (25 BTC) each.
In 2019, there were 45 large traders on an average with no notable growth throughout that year, but in 2020, they have doubled with a new record of 102 large traders set just two weeks ago.
“This is perhaps one of the best indications of increased institutional demand for bitcoin exposure, and we already know that investors like Paul Tudor Jones are a part of this growing group on CME, currently the second-largest futures market for bitcoin,” noted Arcane Research.
Even the whales, addresses holding at least 10,000 BTC and 1,000-9,999 BTC, are near their all-time highs.
#Bitcoin closed yesterday above $15K for the fourth day in a row. This is the first time in history that bitcoin has held this price level for 96 hours. A new record.
— Tyler Winklevoss (@tyler) November 12, 2020