November 28, 2020

A Crypto Investor

Just another Crypto Guys Blog

Bitcoin price dips below $18K — Time to watch these ‘whale cluster’ support zones

Bitcoin (BTC) price dropped below the $18,000 support level on Nov. 22. This comes after BTC continuously saw high over-the-counter (OTC) and institutional volume throughout November.

BTC/USD 1-hour chart. Source: Tradingview

Data suggests that the growing institutional demand was likely one of the main catalysts behind the BTC price rally to $18,965.

According to the data from Skew, Grayscale Bitcoin Trust’s volume on OTC Markets increased significantly in the fourth quarter.

OTC Markets is a securities exchange in the U.S. that allows institutional and accredited investors to purchase various securities. The Grayscale Bitcoin Trust trades on OTC Markets, similar to an exchange-traded fund (ETF).

Grayscale Bitcoin Trust daily volume. Source: TradingView.com

This is an institution-led Bitcoin rally

There is a clear difference between the ongoing uptrend and the 2017 rally. This time, Bitcoin has shown more composure and stability throughout the uptrend, consecutively reclaiming major resistance levels.