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3 reasons Bitcoin price just hit $16,000 for the first time since 2017

3 reasons Bitcoin price just hit $16,000 for the first time since 2017

The worth of Bitcoin (BTC) surged previous $16,000 at present, Nov. 12, for the primary time in almost three years. The momentum of the dominant cryptocurrency is strengthening on account of three key main elements.

The primary catalysts behind BTC’s rally are the non-overheated derivatives market, repeated retest of $16,000, and the $14,900 whale provide zone.

The weekly chart of Bitcoin with share positive factors. Supply: TradingView.com

The latest dip reset the Bitcoin derivatives market

On Nov. 10, the value of Bitcoin abruptly declined to as little as $15,072. The market drop occurred merely 24 hours after it noticed one other main dip to $14,805, which turned merchants cautious.

However the drop benefited Bitcoin for 2 key causes. First, it allowed whales to take revenue on their positions at across the $15,000 assist stage. Second, it neutralized the futures market by flushing out late consumers or lengthy contract holders.

Resetting the futures market and the funding fee for Bitcoin futures contracts was essential for sustaining the continuing BTC rally.