Analysts believe Bitcoin price rally may continue beyond $16,000.
As factors for the rally to continue analysts pointed out unmoved supply, lower Bitcoin exchange reserves, a rise in “stronger hands,” and unrealized profits.
The number of BTC held on exchanges drops. Since Feb. 11, Bitcoin exchange reserves dropped from 2.96 million to 2.41 million. In dollar terms, a drop of 550,000 BTC is equivalent to $6.36 billion.
“This current trend has seen a divergence between BTC stock and price, which suggests a more sustainable move upwards for $BTC,” Delph’s analyst Paul Burlage said.
Falling Bitcoin exchange reserves is an optimistic occurance because it means fewer sellers are depositing BTC to exchanges.
Bitcoin price reaches the highest level since January 2018. Altcoins demonstrate similar bullish dynamics: Ethereum rose in price by 7% (to $ 411), Bitcoin Cash — by 6% (to $ 248), and Ripple — by 4% (to $ 0.24). At the same time, the total cryptocurrency marketcap increased by almost 6% — to $ 421 billion.
The crypto community are hoping that if Democrats come into power, then the approach to regulating cryptocurrencies would be more positive.