Bitcoin Halving Impact Fades as Demand Takes Center Stage
According to reports, the Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
Analyst David Puell suggests that Bitcoin will see a crucial point at $14,000 USD as a result of whale investors.
Considering and analysing data on the past four-year cycle of Bitcoin, Puell believes that whale clusters commonly buy when Bitcoin is sitting between $9,000 USD to $12,000 USD. The data points out that whales buying around $9,000 USD usually gain high profits, which results in volatility when the investors look to sell between $12,000 USD and $14,000 USD.
1) It has been a long road since the Bitcoin top of 2017. Herein, a nowhere-near complete summary of what has transpired.
Next below, a brief thread on few interesting tidbits. Shoutout to @whale_map for the innovative on-chain metrics. pic.twitter.com/jYYhYRIdwq
— David Puell (@kenoshaking) August 16, 2020
Bitcoin Price Right Now
As Bitcoin moves around the $12,000 USD range, the cryptocurrency has not shown any major volatility yet. Bitcoin price recently saw a jump from the $9,000 USD mark to $11,000 USD towards the end of July. Over the past seven days, the leading cryptocurrency has seen a high of $12 150,99 USD and a low of $11 195,71 USD. While Bitcoin has been testing to break the $12,000 USD mark, it has not been able to hold to see a new support barrier.
Regarding the price, Puell says whales who want to buy low and sell high might hope for the rally to continue, saying:
“Finally, unspent whale clusters confirm a great battle taking place. Two actors at play: top buyers at 12k-14k reaching their breakeven price, and current buyers active after the first higher high in over a year. If we get a correction, it will most likely result in another major cluster of re-accumulation at the 10k area (as expected from the volume profile before); if we breakout, well… enjoy the ride.”
It is important to note that while considering the data using historic cycles is helpful, there are new factors affecting Bitcoin price to note. The global pandemic, price of gold, and struggling US dollar price, for example, might be driving forces for Bitcoin adoption, which will see the token hit a consistent incline.