Bitcoin (BTC) price has never been above $ 10,000 in the past three months. The figure shows the sheer strength of the momentum of BTC’s ongoing uptrend.
Researchers at cryptocurrency market data firm The Tie said:
“Bitcoin held over $ 10,000 for over 90 days (closing basis). This is the longest time in its history. This graph shows the 3 longest periods over $ 10,000. The market structure looks very strong this time around as prices break highs and trend upwards. ”
Over the past two weeks, various data points have shown that miners and whales were selling BTC.
Despite the sell-off, BTC remained stable above $ 10,000. This trend shows that buyer demand for BTC is outpacing selling pressure.
The number of days over $10,000 for Bitcoin. Source: The Tie
Why this specific statistic is critical to Bitcoin and its current rally
Bitcoin has seen similar cycles repeatedly throughout history. BTC would rapidly increase, crash and experience a new phase of accumulation in a short period of time.
Such an extreme market pattern is not ideal for Bitcoin for two reasons.
First, it is rocking retail investors to the point where new capital may be fearful of reentry in the short term.
Second, Bitcoin is prone to massive pullback, especially when a cascade of futures liquidations occurs.
This time around, Bitcoin was stable and resilient, despite testing a critical resistance area at $ 13,500. However, there has been no sharp retreat or reaction from the sellers.
According to researchers at The Tie, the increasing demand from buyers could be due to the PayPal announcement.
Less than a week ago, PayPal announced that it would allow crypto purchases and sales to hundreds of millions of users.
Since then, the mood in the Bitcoin market has improved noticeably due to various key figures and measuring devices in the chain. The tie wrote:
“Investor sentiment was positive during this price surge, as indicated by the TIE Sentiment Score. A score above 50 means the conversations were positive, and as shown in the table below, the score was above 50 all week. Sentiment peaked at 89 shortly after the PayPal announcement. ”
The key is persistently optimistic market sentiment
Bitcoin’s price is already in a range that is of great interest to sellers. In order for BTC to continue a rally without market exhaustion, positive market sentiment would need to be maintained.
The main source of market optimism in the fourth quarter was the sudden surge in institutional demand.
In the coming months, the institutional appetite for Bitcoin would be instrumental in keeping the momentum going through 2021.
The weekly price chart of Bitcoin. Source: TradingView.com