Bitcoin’s price has passed the critical mark of USD 14,000, the highest level since January 2018.
The Bitcoin price (BTC) exceeded USD 14,000 on October 31, the day Satoshi Nakamoto published the Bitcoin white paper in 2008. Since then, the world’s largest cryptomone currency has experienced remarkable and exponential growth in several areas.
In the 12 years since the publication of the whitepaper on October 31, 2008, Bitcoin is on a different growth trajectory. Institutional madness is driving BTC’s rebound, major financial institutions are supporting cryptoactives, and the market has become increasingly liquid.
The post-halving upward cycle meets Bitcoin’s 12th anniversary
The 12th anniversary of the Bitcoin White Paper is very special for Bitcoin because it marks the third post-halving cycle.
Every four years, Bitcoin undergoes a halving of the block reward, which halves the rate at which a new BTC is mined. This happens because there can only be 21 million BTCs in its block chain. As BTC approaches its maximum supply, the rate of production slows down.
Historically, halving has had a positive impact on the price of Bitcoin. It slows the rate at which a new supply of BTC is introduced into the market. As a result, every four years, there are fewer BTCs flowing into the exchange market. The fourth, eighth and twelfth anniversaries of Bitcoin are more noteworthy than other anniversaries for this reason. It coincides with a post-Halving cycle, as the last one was in May 2020.
Bitcoin’s historic ‚white paper day‘ prices have grown considerably over the last decade. For example, in 2013, the BTC price was just USD 204. In 2014, it reached USD 338 million; 2015 – USD 314; 2016 – USD 700; 2017 – USD 6,468; 2018 – USD 6,317; and USD 9,199 in 2019.
The BTC price rejected USD 14,100
In the major exchanges, the price of Bitcoin reached a peak of USD 14,100 and saw an immediate rejection on Saturday 31 October. Most of the selling pressure came from Binance, which caused the price to fall rapidly by 3% in just minutes.
Before the rejection, the huge buying walls at Huobi and Binance initially pushed BTC up. There was a 1371 BTC buying wall at Binance at USD 13,680 and another large buying wall at Huobi at over USD 13,800.
A Bitcoin trader known as „CL“ said it was the „biggest buying wall in Huobi I’ve seen in a long time“.
But while BTC exceeded USD 14,000, Binance traders began selling large amounts of BTC in a short period. Prior to the rise of BTC to USD 14,100, technology investor and Cointelegraph Markets contributor, Keith Wareing, wrote
„Unfortunately, Bitcoin will be rejected at USD 14,000 and will fall back below the 2019 high thanks to the Binance whales.
When the price of Bitcoin rises quickly and falls violently, traders describe the pattern as a „darth maul candle“.
After such a large increase in volatility, Bitcoin tends to stabilize and consolidate. With USD 14,000 being a crucial resistance level, it’s likely that BTC will consolidate below USD 14,000 and attempt to break out continuously.
CryptoQuant, the chain market data provider, has been pointing out that Bitcoin deposits on the exchanges have been declining. This generally indicates a decrease in selling pressure, particularly among retail investors and whales.
According to Ki Young Ju, CEO of CryptoQuant, he said the trend is seen as a „long-term buying signal“. The lack of intention to sell by investors in the stock market indicates that a prolonged upward trend has become more likely.
Optimistic market sentiment complemented by strong fundamentals and several positive technical factors only fit the 12th anniversary of Bitcoin.