Home Business Insights & Advice Bitcoin on fire: after crossing resistance of $16,000

Bitcoin on fire: after crossing resistance of $16,000

by Sponsored Content
17th Nov 20 9:44 am

Bitcoin has crossed its 2020 chief value as published in the Cointelegraph on 11/13/2020.

BTC has performed very well so far in November 2020. And there is a dazzling future for the top-ranked digital currency.

After a continuous rise in price, bitcoin still stands above $16,000, 23% more than at the start of the month. We saw most of the surge at the end of the presidential election in the United States of America.

Now, bitcoin is above $16,000 which has broken all previous records in 2020, showing a high demand for Bitcoin, last month bitcoin volume increased over 270%, according to Arcane researchers, November 5 brings the highest daily volume since Black Thursday’s bitcoin price plummeted below $4,000 on March 13

For fear of missing out, we see many seasonal traders in the market alongside long-term investors and public trading companies who are investing in Bitcoin and becoming a reason to increase its value. To know more about Bitcoin visit Bitcoin storm trading

Surging institutional volume

Institutional interest was very high throughout November, many high-profile companies have invested in BTC along with high-worth individuals invested in it, that cause spot reaching a high volume of 2020

A major reason for increasing bitcoin is the fast-growing number of users, according to researchers. There are 102 large traders who are holding the positions that have a minimum of 25 BTC size, which is 126% more than the total numbers shown in the year 2019.

Many big companies like MicroStrategy have to get a part in the Bitcoin market by buying bitcoin worth 245 million US Dollars and involving trusted payment services provided by companies such as PayPal has increased the trust factor of the public.

More users mean higher price of Bitcoin

According to economic laws, when the demand for any asset increases its price increases if it is a scarce asset, the same happens with bitcoin, increasing people’s interest in BTC and its products is also a reason for an increase in its value and its upward trend because of the participation of institutional and retail investors interest.

Because of increasing interest and continuous market growth, it is very possible that authorities will approve it that will open new gates for investors and traders to engage with digital currencies and Bitcoin.

We recorded the current value for only a few days

Bitcoin only held for 12 days at the current price. According to experts, the only bitcoin surpassed $16,000 in just another 12 days. 10 of them were in 2017, and the highest close was in December 2018, which is an all-time highest closing value of 20089 US dollars.

We also see 16000 dollars as record-high volume because of over 5.5 billion worth of bitcoin trading recorded on the 5th of November, as compared to the previous month investors have shown more interest in bitcoin and gained profit. Bitcoin only stayed nine days on stronger volume in history

If you have invested in bitcoin for only 1 dollar in 2010, it has increased to 58339 dollars today, so there is not any best investment than Bitcoin as a Safe-haven.

 Higher interest can cause volatility

Bitcoin exchanges and contracts offer high leverage of up to 125 times that allow traders access of 1 to 125 depending on the platform, and when users use high leverage, it means the liquidation price is close to the entry price.

It also means a tighter ranger price of liquidation. If you choose 20x at 16300 dollars, it drops BTC below 15600 dollars, and it gets liquidated. A position liquidated with stop-loss placement wipes out the whole position.

These operations make an important move in the commercial market and open a major interest in the futures market, and Bitcoin shows strong peaks of volatility in its price. This trend makes the bitcoin price uncertain if it affects positively or negatively, causing long-term investors to squeeze out of the market and the price of bitcoin going down if short-term investors or traders are liquidated.

The average price rate to enter bitcoin is 0.01% of its true value, which makes the market relatively balanced so that no one can overwhelm the market.

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