Bitcoin (BTC) price topped $ 14,000 on October 31, the day Satoshi Nakamoto published the Bitcoin white paper in 2008. Since then, the world’s largest cryptocurrency has seen remarkable and exponential growth in various fields.
12 years in advance, since the publication of the whitepaper on October 31, 2008, Bitcoin has been on a different growth path. Institutional madness is leading the BTC rally, major financial institutions are supporting crypto assets, and the market has become increasingly liquid.
The bull cycle after halving meets Bitcoin’s 12th anniversary
The 12th anniversary of the Bitcoin whitepaper is special for Bitcoin as it represents the third cycle after halving.
Every four years, Bitcoin undergoes a block reward halving, which halves the rate at which new BTC is mined. This is happening because 21 million BTC can ever exist on the blockchain. As BTC approaches its firm supply, the rate of production slows down.
A halving in the past has had a positive effect on the price of Bitcoin. This slows the pace at which a new BTC offering is brought to market. As a result, less BTC flows into the stock market every four years.
Bitcoin’s 4th, 8th, and 12th anniversaries are more notable than other anniversaries for this reason. It coincides with a post-halving cycle as the last halving occurred in May 2020.
The historical prices of Bitcoin on “Whitepaper Day” have increased significantly over the past decade. For example, the 2013 BTC price was only $ 204. In 2014, it reached $ 338 million; 2015 – $ 314; 2016 – 700 USD; 2017 – $ 6,468; 2018 – $ 6,317; and $ 9,199 in 2019.
The BTC price was declined at $ 14,100
On all major exchanges, the price of Bitcoin peaked at $ 14,100 and was immediately rejected on Saturday October 31st. The biggest selling pressure came from Binance, which caused the price to drop 3% quickly in minutes.
Before the rejection, massive buying walls on Huobi and Binance BTC initially pushed up. There was a 1,371 BTC buy wall at Binance at $ 13,680 and another large buy wall at over $ 13,800 at Huobi.
A pseudonymous bitcoin trader named “CL” said it was “the largest shopping wall on Huobi that I have seen in a long time”.
When BTC exceeded $ 14,000, Binance’s traders began selling large amounts of BTC within a short period of time. Prior to BTC’s surge to $ 14,100, Keith Wareing, tech investor and Cointelegraph Markets employee, wrote:
“Unfortunately, Bitcoin is rejected at $ 14,000 and falls back below its 2019 high thanks to Binance whales.”
What happens next?
When the price of Bitcoin rises quickly and declines violently, traders describe the pattern as a “Darth Maul candle”.
After such a sharp surge in volatility, Bitcoin tends to stabilize and consolidate. Given that $ 14,000 is a critical level of resistance, BTC would likely consolidate below $ 14,000 and keep trying to break out.
CryptoQuant, the on-chain market data provider, has found that bitcoin exchange deposits have declined. This usually indicates declining selling pressures, especially among retail investors and whales.
According to Ki Young Ju, CEO of CryptoQuant, the trend is viewed as a “long-term buy signal”. The lack of intent from investors to sell on exchanges suggests that a sustained uptrend has become more likely.
An optimistic market sentiment, complemented by strong fundamentals and various positive technical factors, only fits Bitcoin’s 12th anniversary.