three causes Bitcoin value simply hit $16,000 for the primary time since 2017

The value of Bitcoin (BTC) surged previous $16,000 right this moment, Nov. 12, for the primary time in practically three years. The momentum of the dominant cryptocurrency is strengthening as a result of three key main components.

The principle catalysts behind BTC’s rally are the non-overheated derivatives market, repeated retest of $16,000, and the $14,900 whale provide zone.

The weekly chart of Bitcoin with share good points. Supply: TradingView.com

The latest dip reset the Bitcoin derivatives market

On Nov. 10, the worth of Bitcoin abruptly declined to as little as $15,072. The market drop occurred merely 24 hours after it noticed one other main dip to $14,805, which turned merchants cautious.

However the drop benefited Bitcoin for 2 key causes. First, it allowed whales to take revenue on their positions at across the $15,000 help degree. Second, it neutralized the futures market by flushing out late patrons or lengthy contract holders.

Resetting the futures market and the funding charge for Bitcoin futures contracts was crucial for sustaining the continued BTC rally.