Are we beating a dead horse?
No – because as much as we report on the Bitcoin rally happening now, Bitcoin values just continue to rise.
Yesterday’s pinnacle was around $15,500.
Today, Bitcoin is testing $16,000, which is keeping giddy investors glued to their screens, some of them calculating and recalculating their recent gains if they bought in anytime within the past year.
Over at Cointelegraph, Joseph Young is suggesting that part of the ongoing rally is related to healthy derivatives trading for the cryptocurrency as exchanges are tightening their KYC requirements and trying to fall in line with the mandates of regulators. Young also mentions the community of whales or major traders who tend to direct price action in different ways depending on their actions.
“On Nov. 10, the price of Bitcoin abruptly declined to as low as $15,072,” Young writes. “The market drop occurred merely 24 hours after it saw another major dip to $14,805, which turned traders cautious. But the drop benefited Bitcoin for two key reasons. First, it allowed whales to take profit on their positions at around the $15,000 support level. Second, it neutralized the futures market by flushing out late buyers or long contract holders. Resetting the futures market and the funding rate for Bitcoin futures contracts was critical for sustaining the ongoing BTC rally.”
For a while now, we’ve seen evidence that the whales are bullish on Bitcoin, and that’s having a tremendous impact on the momentum of the front-running cryptocurrency.
Young presents this data on something called a “whale map.”
“Data from Whalemap shows that whale clusters form when high-net-worth individuals buy BTC and do not move it,” Young writes. “The price at which those purchases cluster is then considered a support level.”
All of these indicators notwithstanding, it seems reasonable that Bitcoin is not going to continue to rise indefinitely – so keep that in mind as you pursue long-term crypto portfolio strategies.