Bitcoin (BTC) has hit a new annual high of $ 16,717 on Binance. After the breakout, traders expect a stronger rally in the near future.

Analysts are predicting a long-term bullish trend for several reasons. First, Bitcoin pulled out of $ 16,000 entirely, breaking the $ 16,473 peak reached on November 13th. Secondly, a “sales crisis” is brewing as more BTC accumulates than is mined. Thirdly, bitcoin rallied despite signs of overbought.

BTC / USD hours chart. Source:
Senior analysts mistake bitcoin for fix
Earlier in the day, John Bollinger, a veteran trader and founder of the Bollinger Bands Index, said he was wrong about Bitcoin’s correction.

Bollinger said on November 10 that Bitcoin is showing a “short-term rally.” At the time, Bollinger was not sure if this would lead to a correction or rally, but he said he expected the market to calm down.

A number of analysts were expecting Bitcoin to decline, especially as it neared the close of the weekly candlestick. However, BTC is growing steadily and has an upward trend. Bollinger said:

“Looks like I was wrong about the chances of reform, all we had was a little consolidation and then a race again. Such non-working patterns in US dollars versus US dollars are signs of strength, so the path of least resistance is now higher. # BTC ”
Derivatives traders also indicated that the supply of bitcoins has declined, leading to a sales crisis. This trend could lead to a rise in BTC even when testing key support levels.

A futures and options trader under the pseudonym “Light” said that about 3,000 BTC has been withdrawn per day since BTC hit the $ 10,000 mark. This trend shows that demand for bitcoins is high and that miners are refusing to sell BTC, which is optimistic about BTC. The merchant said:

“Now at $ 16,600, up from $ 11,000. After the $ 10,000 outbreak, 3,000 BTC are being withdrawn daily from major central BTC exchanges … Miners have recently been refusing to sell their half of the bonuses due to demand and are feeling comfortable above the break-even point. ”
BTC Price Reacts Positively To Today’s Breakthrough In Vaccines
On November 12, when Pfizer announced a highly effective coronavirus vaccine, the bitcoin price fell nearly 3% in a matter of hours.

This time, following the publication of the highly anticipated results of the Moderna vaccine, the price of bitcoin has risen by almost 5%. Over the same period, gold faced difficulties, gaining only 0.17%.

But traders say that if Bitcoin falls, as it did on November 12, it will open up a “long deflation” opportunity. A well-known crypto dealer known as Hsaka said:

“The last time we received vaccine news, $ BTC followed a groan of initial gains, but eventually gave way to a fall in gold. It might be worth buying a flop if history repeats itself and the same opportunity presents itself. ”
The combination of technical dynamics, a sales crisis and obvious growth dynamics makes BTC stable above $ 16,000. Given that Bitcoin did not fall immediately after the rally, there is good reason to turn $ 16,000 into a strong support zone.

Source: CoinTelegraph