Bitcoin Eyes New Yearly Highs, Buy Pressure Skyrockets
Buying pressure is building up behind Bitcoin as investors begin to understand its potential to disrupt the global financial system.
Key Takeaways
- Bitcoin is up more than 10% over the past week, rising to a new yearly high of over $16,700.
- On-chain data suggests that BTC price is correlated with the capital flowing into the space, which is extremely bullish.
- Moving past the $16,800 barrier could see prices rise towards $18,500.
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Bitcoin continues to lead the uptrend in the cryptocurrency market. Its price rose over 4% following Monday’s open, and on-chain metrics point to further gains on the horizon.
Bitcoin Sees Largest Capital Influx to Date
The flagship cryptocurrency has been on a roll lately, surging more than 10% in the past week. As more billionaires increase their BTC holdings to hedge against a global financial downturn, the upward pressure quickly builds.
On-chain analyst Willy Woo maintains that the capital influx into Bitcoin is at its highest rate to date based on the average price investors paid per token.
For this reason, the on-going bullish momentum can be described as “organic.”
Woo indicated that prices are currently positively correlated with investors’ capital entering and leaving the market.
Realised Price estimates the average price the market paid for their BTC.
Now at its steepest slope for this cycle, meaning capital influx into #Bitcoin is at its highest rate since the last bull market.
(Higher than last year's $4k-$14k move; the current move is more organic.) pic.twitter.com/fF3Cn8glfA
— Willy Woo (@woonomic) November 15, 2020
The bullish outlook is further validated by a continuous increase in the number of whales on the network. Data from the behavior analytics platform Santiment reveals that addresses with 10,000 to 100,000 BTC are up nearly 7% in the past month.
Roughly seven new whales have joined the network since Oct. 21.
Paolo Ardoino, CTO at Bitfinex, believes that Bitcoin’s increasing interest comes after investors realized that this digital asset represents a “monumental technological shift” in money evolution.
“The backdrop to the recent strong price performance are fundamentals that include banks launching more crypto services and increasing institutional investment in the asset, along with the notion of state-backed digital currencies becoming ever more pervasive,” said Ardoino.
While investors flock to the cryptocurrency market, resistance is drastically diminishing.
IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model reveals little to no significant supply barriers ahead of Bitcoin.
The only potential obstacle to overcome lies at $16,800, where 53,000 addresses had previously purchased 90,000 BTC. Slicing through this relatively weak resistance wall could lead to a further advance towards $18,560.
Everything seems to point out that Bitcoin is bound for higher highs. The bullish thesis is qualified by stable support. The IOMAP cohorts show that nearly 450,000 addresses bought over 740,000 BTC between $15,200 and $15,700.
This massive demand zone may have the ability to absorb some of the selling pressure in the event of a sudden correction.
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