Bitcoin (BTC) fell below the support level of $ 18,000 on November 22 after a steady increase in over-the-counter (OTC) and institutional volumes during November.

The data show that the increase in institutional demand was probably one of the main catalysts for the increase in bitcoin prices to $ 18,965.

According to Skew, the size of the Grayscale Bitcoin Trust in the OTC market increased significantly in the fourth quarter.

OTC Markets is a US exchange that allows institutional and accredited investors to buy a variety of securities. Grayscale Bitcoin Trust is traded in over-the-counter markets, just like an exchange-traded fund (ETF).

This is the rise of bitcoin led by an institution
There is a clear difference between continued optimism and the 2017 high. This time, Bitcoin has shown more calm and stability throughout the trend, and consistently draws important levels of resistance.

Bitcoin has seen an increase in spot volume, open interest rate futures and institutional demand. However, various indicators such as Google Trends have shown that the prevailing interest in bitcoin is relatively small.

The combination of the two factors mentioned above indicates that institutions have probably been the main driving force behind the recent increase.

Active institutional involvement in the long-running Bitcoin rally is optimistic, as it is likely that institutions will merge BTC with a long-term strategy.

This trend explains why Bitcoin aggressively buys most of the significant drops in November. As Cointelegraph reports, Dan Tabiro, co-founder of 10T Holdings, said, “Big boys will buy dips now.”

Tabiro also emphasized that true basic factors drive the ongoing rally, in contrast to the 2017 obsession. He said:

“The third wave until 2017 will be continued by dwarves and will last for several years.”
Bitcoin investor Michael Novogratz said that Bitcoin has gradually become an institutional asset.

In recent months, more and more institutions, hedge funds and investment banks have begun to compare BTC with gold. Novogratz told CNBC:

“Bitcoin is now an institutional asset. Period. The good news is that most of the institutions have not yet entered it. This is why 2021 will be better or better than 2020. ”
3 groups of whales to watch BTC fall for less than $ 18,000
Whales, or wealthy investors, typically use OTC trades and exchanges at the same time to collect bitcoins.

During November, analysts from the analysis company Whalemap discovered the appearance of large groups of whales.

Whale groups are price levels where whales buy BTC instead of moving their assets. Clusters often refer to regions where whales buy bitcoin.

Bitcoin whale groups throughout November. Source: Whale map
Whale map data shows that $ 16,411, $ 16,278 and $ 15,691 still look like large groups of whales. So even though BTC is seeing a short-term decline, the violent influx of whales in November has created critical areas for support.

In the short term, following the recent correction in the BTC from $ 18,865 to less than $ 18,000, whale groups are expected to serve as important support levels. The $ 17,300 and $ 16,411 price levels remain the most important support levels.

Source: CoinTelegraph