The price of Bitcoin is advocating $15,000 support and the chain data signals that the high may continue beyond $16,000
After rejecting at $15,960 on November 6, the price of Bitcoin ( BTC ) has been defending the support level of $15,000 with force. Based on four data points, analysts believe the bullishness may continue beyond $16,000.
Analysts have identified Bitcoin reserves in the lower exchanges, unchanged supply, an increase in „stronger hands“ and unrealized profits as factors for recovery to continue.
The number of BTCs held in exchanges falls
Recently, Delphi Digital, an independent research and consultancy company in cryptomorphics, released a report on the prospects for the Bitcoin market.
Paul Burlage, an analyst at Delphi, said that the network metrics generally portray a strong drive for Bitcoin.
Since 11 February, Bitcoinnas exchanges‘ reserves have fallen by about 550,000 BTC equals US$6.36 billion.
The drop in Bitcoin reserves at the exchanges is an optimistic occurrence because it means fewer sellers are depositing BTC on exhanges. Burlage said :
„On February 11, 2020, the $BTC in exchanges reached its historic high of ~2.96 million. At the time of writing, $BTC on exchanges stands at ~2.41M. This current trend has seen a divergence between BTC shares and the price, suggesting a more sustainable upward movement to BTC $. ”
BTC supply peaks not moved
Although fewer sellers have transferred their funds to the exchanges, the unchanged BTC offer remains high.
On September 9, Burlage explained that the percentage of unchanged Bitcoin Sunrise supply reached a historic high of 63.5 percent. Since then, it has declined slightly to 62%, but considering that the price has increased substantially, it is a positive metric. He explained:
„We saw a slight fall in the % of unchanged supply last year and last week. After reaching an all time high of around 63.5% of unchanged supply on 9 September, we are now around 62.0%. ”
This shows that investors are increasing BTC HODLing, despite the recent surge, without making large profits yet.
Still no clear signs of top
The number of „weak hands“ or speculative buyers has visibly declined in recent weeks, while the stronger hands have strengthened.
The flow of short-term buyers and the entry of long-term „HODLers“ indicates that Bitcoin could have a prolonged recovery.
This trend coincides with Bitcoin’s resilience above $15,000 and shows that the once heavy resistance level is close to evolving into a support area. Burlage noted:
„Although local highs for ‚weak hands‘ tend downwards, we cannot confirm whether the recent increase in the speculative base has formed a top. That said, the larger trend suggests that stronger hands are populating short-term age groups rather than speculators. ”
Unrealised profits from Bitcoin signal that the rise can continue
In July 2019, the price of Bitcoin reached a peak of about $14,000. At the time, Glassnode technical director Rafael Schultze-Kraft said that the relative unrealized profit on Bitcoin reached 0.64.
Currently, although the price of Bitcoin is above $15,000, the Relative Unrealized Profit is at 0.53. This shows that BTC has the potential to see a broader recovery before a strong setback.