BTC/USD Daily Chart
eToro, the brokerage platform listed 15 factors which caused most crypto assets to rally, among the factors listed are mergers, funding, halving, partnerships, staking, and announcements. It was consequently noted that mergers and acquisitions remain the biggest factor behind near term explosive crypto rallies. Halving, funding, partnerships, and staking stay behind acquisitions in daily, hourly and weekly performance.
eToro researchers also found that mergers and acquisitions lead up to 90% chances of a positive return throughout the week.
The probability of a crypto asset’s price surge after a significant development. Courtesy: eToro
In the near term, traders believe the Bitcoin price trend will be largely determined by how it behaves at the $11,200 to $11,325 support region. Due to a weakening technical momentum of BTC, traders generally see a bigger support region from $10,500 to $11,000.
Michael van de Poppe a trader, sees a healthy ongoing trend in the larger crypto market due to a healthy aggregate market cap. He stated that BTC could see a drop to the $10,600 to $10,900.
Edward Morra, an analyst, opined that BTC may experience a pullback to the $11,100 level, noting that BTC hit an important “daily supply” level when it rallied to $11,700. A pseudonymous trader “Bitcoin Jack,” opined that while the present trend is not bearish, it’s not primed for a continuation either.
“Byzantine General,” another pseudonymous trader sees $12,000 as the most critical level as technically there is no strong resistance between $13,000 and $16,500. A climb past the $12,000 to $13,000 range could lead to $16,500 and ultimately a new ATH.
Presently, various on-chain indicators and fundamental factors like HODLer growth, hash rate, and Bitcoin exchange reserves are bullish. Also, the developer activity of the Bitcoin blockchain protocol has continuously spiked.
Gold, inflation, and negative interest rates with the post-halving cycle of Bitcoin as it enters 2021 may also matter on Bitcoin’s path to $13k.