The price of Bitcoin surpassed the critical $14,000 mark, the highest level since January 2018.
The price of Bitcoin (BTC) surpassed $14,000 on October 31, the day Satoshi Nakamoto launched the Bitcoin white paper in 2008. Since then, the world’s largest cryptomeda has experienced remarkable and exponential growth in several areas.
12 years later, since the launch of the white paper on 31 October 2008, Bitcoin is on a different growth path. An institutional mania is leading BTC’s rise, major financial institutions are supporting crypto assets, and the market is becoming increasingly liquid.
The 12th anniversary of Bitcoin white paper is particularly special for Bitcoin because it marks the third post-halving cycle.
Every four years, Bitcoin undergoes a reduction in the block reward, which halves the rate of new BTC extraction. This is because only 21 million BTC can exist in the blockchain. As BTC approaches its fixed supply, the rate of production decreases.
Halvings have historically had a positive impact on the price of Bitcoin. It reduces the pace at which a new supply of BTC is introduced to the market. Consequently, every four years less BTC enters the exchange market.
The 4th, 8th and 12th anniversaries of Bitcoin are more notable than other anniversaries for this reason. This coincides with a post-halving reduction cycle, as the last reduction occurred in May 2020.
Historic Bitcoin prices on „paper day“ have grown considerably over the last decade. For example, in 2013, the price of the BTC was only $204. In 2014, it reached $338 million; 2015 – $314; 2016 – $700; 2017 – $6,468; 2018 – $6,317; and $9,199 in 2019.
At major exchanges, the price of Bitcoin peaked at $14,100 and had an immediate rejection on Saturday, October 31. Most of the selling pressure came from Binance, which made the price fall quickly 3% in a few minutes.
Before the rejection, huge buying walls at Huobi and Binance initially pushed the BTC up. There was a 1,371 BTC buying barrier at the Binance at $13,680 and another large buying barrier at over $13,800 at Huobi.
A Bitcoin trader alias known as „CL“ said it was „the biggest buying wall in Huobi that I have seen in a long time.
But as BTC exceeded $14,000, Binance traders began selling large quantities of BTC in a short period. Before BTC’s rise to $14,100, technology investor and contributor to Cointelegraph Markets, Keith Wareing, wrote:
„Unfortunately, Bitcoin will be rejected at $14k and will return below the 2019 high thanks to the binance whales.“
When the price of Bitcoin rises quickly and rejects violently, traders describe the pattern as a „darth maul candle“.
After a large increase in volatility, Bitcoin tends to stabilize and consolidate. Considering that $14,000 is a crucial level of resistance, the BTC would likely consolidate below $14,000 and continually attempt to break.
CryptoQuant, the chain market data provider, has pointed out that Bitcoin exchange deposits are declining. This usually indicates declining selling pressure, especially among retail investors and whales.
According to Ki Young Ju, CryptoQuant’s CEO said the trend is considered a „sign of long term buying“. The lack of intent by investors to sell on the stock market indicates that a prolonged upward trend has become more likely.
An optimistic market sentiment complemented by solid fundamentals and several positive technical factors only fit in with Bitcoin’s 12th anniversary.