Bitcoin has temporarily exceeded the critical $14,000 mark, reaching its highest level since January 2018.
The price of Bitcoin (BTC) temporarily exceeded $14,000 on October 31, the same day Satoshi Nakamoto published the Bitcoin white paper in 2008. Since then, the world’s largest cryptocurrency has seen surprising and exponential growth in various areas.
12 years after the publication of the white paper on 31 October 2008, Bitcoin is on a rather different growth trajectory. An institutional craze is driving the rise of BTC, major financial institutions are supporting crypto assets and the market has become increasingly liquid.
The post-halving bullish cycle meets Bitcoin’s 12th anniversary
The 12-year anniversary of Bitcoin’s white paper is particularly special for Bitcoin as it marks the third post-halving cycle.
Every four years, Bitcoin undergoes a block reward halving, which halves the number of new BTC mines. This event occurs because only 21 million BTCs can exist on the blockchain. As Bitcoin approaches the limit of its offer, the production rate is slowed down.
Historically, halving has had a positive impact on Bitcoin’s price. By reducing the speed at which new BTC offerings are introduced to the market, there are fewer direct BTCs on exchanges every four years.
Bitcoin’s 4th, 8th and 12th anniversaries are more noteworthy than other anniversaries for this reason. They coincide with a post-halving cycle, the most recent of which took place in May 2020.
Historical Bitcoin prices on the occasion of the “white paper day” have grown considerably in the last decade. For example, in 2013 BTC was only $204. In 2014, it reached $338, in 2015 $314, in 2016 $700, in 2017 $6,468, in 2018 $6,317 and in 2019 $9,199.
BTC rejected at $14,100
On Saturday 31 October, the price of Bitcoin reached a peak of $14,100 on the main exchanges followed by an immediate rejection. Much of the selling pressure came from Binance, leading the price to lose 3% within minutes.
Before the correction, huge walls of buy orders on Huobi and Binance initially pushed BTC upwards. Binance saw a purchase order from BTC 1,371 to $13,680, while another big bid over $13,800 was made on Huobi.
A Bitcoin trader by a pseudonym known as “CL” said it was “the biggest wall of buy orders on Huobi in a long time”.
However, when BTC exceeded $14,000, traders on Binance started selling huge amounts of BTC in a short period of time. Before BTC soared to $14,100, Cointelegraph Markets collaborator and tech investor Keith Wareing tweeted:
“Unfortunately, Bitcoin will be rejected at $14,000 and will return to its 2019 high thanks to Binance’s whales.”
What’s the next move?
When Bitcoin’s price rises rapidly and is rejected violently, traders describe the pattern as a “darth maul candle”.
After such a peak of volatility, Bitcoin tends to stabilize. As the $14,000 represents a crucial resistance level, BTC may stop just below for a consolidation phase and continue to attempt the breakout.
CryptoQuant, the on-chain data provider, reported that Bitcoin’s exchange deposits are falling. This usually indicates reduced sales pressure, especially among retail investors and whales.
According to Ki Young Ju, CEO of CryptoQuant, the trend is considered a “long-term purchase signal. The lack of interest from investors in selling on exchanges indicates that a sustained uptrend is more likely.
Optimistic market sentiment accompanied by solid fundamentals and various positive technical factors is the perfect gift for Bitcoin’s 12th anniversary.