The Bitcoin (BTC) price surpassed $ 14,000 on October 31, the day Satoshi Nakamoto released his white paper on Bitcoin in 2008. Since then, the world’s largest cryptocurrency has seen significant growth and according to exponentially across multiple fields.
In the past 12 years, since October 31, 2008, the whitepaper was released, Bitcoin is in a different growth trajectory. An institutional craze is leading the BTC rally, major financial institutions are backing crypto assets and the market becomes increasingly liquid.
The bull after halving meets Bitcoin̵7;s 12th anniversary
The 12-year anniversary of the official Bitcoin report is special for Bitcoin as it marks the third cycle of halving.
Every four years, Bitcoin experiences half the block reward, which halves the rate of new BTC mining. This happens because 21 million BTC can exist on the blockchain. When BTC approaches a fixed supply, the rate of production slows down.
The historic halving has had a positive effect on Bitcoin price. It slows down the speed at which new BTC offers to market. Hence, every four years, less BTC will flow into the exchange market.
Bitcoin’s 4th, 8th, and 12th anniversary are more notable than other anniversaries for this reason. It coincides with the cycle after halving, as the most recent halving happened in May 2020.
The historic price of Bitcoin on the “official reporting date” has seen significant growth over the past decade. For example, in 2013, the price of BTC was just $ 204. In 2014, it reached $ 338 million; 2015 – $ 314; 2016 – $ 700; 2017 – $ 6,468; 2018 – $ 6,317; and $ 9,199 in 2019.
Rejected BTC price at $ 14,100
Across major exchanges, Bitcoin’s price peaked at $ 14,100 and was immediately rejected on Saturday, October 31st. Much of the selling pressure came from Binance, causing the price to rapidly drop 3% within a few. minute.
Before being rejected, large buying walls on Huobi and Binance initially pushed BTC up. There was a wall of buying 1,371 BTC on Binance at $ 13,680, and another big buying wall with more than $ 13,800 on Huobi.
A Bitcoin trader nicknamed “CL” said it was “the biggest buying wall on Huobi I have seen in a long time”.
But when BTC broke past $ 14,000, traders on Binance started selling large amounts of BTC for a short while. Before BTC rose to $ 14,100, technology investor and contributor to Cointelegraph Markets, Keith Wareing, wrote:
“Sadly, Bitcoin will be rejected at $ 14k and back below its 2019 highs thanks to binance whales.”
What happens next?
As the price of Bitcoin rose rapidly and declined fiercely, traders described the pattern as a “stupid candle”.
After such a large volatility, Bitcoin tends to stabilize and consolidate. Considering that $ 14,000 is a key resistance level, BTC is likely to consolidate below $ 14,000 and continually attempt a breakout.
CryptoQuant, the online market data provider, has determined that Bitcoin exchange deposits are declining. That usually shows a decreasing selling pressure, especially between retail investors and whales.
According to Ki Young Ju, CEO of CryptoQuant, this trend is considered a “long-term buy signal”. The fact that investors do not intend to sell on exchanges shows that the prolonged uptrend is more likely to occur.
Optimistic market sentiment is complemented with strong fundamentals and various positive technical factors that are relevant only on Bitcoin’s 12th anniversary.