The Bitcoin price climbed to over US $ 17,000 for the first time since December 2017.
Bitcoin ( BTC ) price broke the $ 17,000 mark for the first time since December 2017, continuing its current upward trend. Shortly before, BTC had fallen below its previous parable, which was initially cause for concern.
Three factors are likely to have contributed to the current rally: a new parabolic trend, resilience above $ 16,000, and the fact that Bitcoin can withstand the selling pressure of the whales.
New parabolic trend
On November 16, Cointelegraph reported that analysts have determined that Bitcoin has fallen below a parabola that dates back to September.
While this caused concern, it has to be said that there may be new parabolic trends in a bull cycle. When BTC fell below the parabola, some analysts said that BTC could form a new parabolic uptrend.
When Bitcoin falls below a parabola and enters a short-term bear cycle, the price usually falls quickly and can fall as much as 80 percent. However, for the past few days, BTC has held steady above $ 16,000.
Bitcoin’s stability reduced the likelihood of a sharp short-term decline and eventually led to a rally.
Resilience above $ 16,000 was important
The fact that Bitcoin held steady above $ 16,000 after initially falling to $ 15,800 on Nov. 16 was key to the recent rally.
Many people predicted that Bitcoin would see a profound short-term correction. Gold fell when the positive results of Moderna’s vaccine studies were made public. BTC faced major resistance at $ 17,000 due to on-chain orders. So it was difficult to overcome this level.
But Bitcoin’s momentum was just too strong and the rally continued. When BTC showed stability after falling below the parabola, traders said the technical pattern was positive.
Trends that typically appear during bull cycles are also gradually showing up. According to on-chain analytics firm Intotheblock, 99 percent of addresses that own Bitcoin are profitable. The company commented:
„About 99 percent of the addresses that currently own BTC are making profits. There are only 164.11 ‚thousand addresses that have bought 44.91 thousand BTC that are not yet positive‘. We could soon be 100 percent profitable for all Bitcoin owners to see. “
Some people might now argue that this suggests that many investors may be cashing out profits and thereby causing a pullback. But, as Bloomberg reports, this rally did not generate much media interest. This makes it less likely that investors will suddenly cash out their winnings.