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Bitcoin price dips below $18K

The Bitcoin price has lost the support range of $18,000, but several whale clusters below indicate that the dip will get aggressively bought up.

On Nov. 22, the Bitcoin price collapsed below the $18,000 support rate. This comes after BTC saw high OTC and institutional volume during November on a continuous basis.

According to the data from Skew, Grayscale Bitcoin Trust’s volume on OTC Markets increased significantly in the fourth quarter. OTC Markets is a U.S. stock exchange that enables institutional and approved investors to buy different securities. The Grayscale Bitcoin Trust trades on OTC Markets, similar to an exchange-traded fund.
Between the continuing upward trend and the 2017 rally, there is a noticeable contrast. Throughout the upward trend, Bitcoin has shown more composure and stability this time, consecutively reclaiming major resistance levels.

According to cointelegraph.com, Bitcoin saw a significant increase in spot volume, open interest exchange futures, and institutional demand. Different metrics, such as Google Trends, have shown that Bitcoin’s mainstream interest remains relatively low. The combination of the two factors mentioned suggests that the institutions have probably been the primary driving force behind the recent rally. The strong participation of institutions in the extended Bitcoin rally is positive, as institutions are expected to accumulate BTC with a long-term plan.

This pattern explains why most of the significant dips that Bitcoin saw in November were bought up aggressively. As Cointelegraph posted, Dan Tapiero, co-founder of 10T Holdings, said, “Big boys will buy dips now.” Tapiero also emphasized that real fundamentals are driving the ongoing rally, unlike the 2017 mania. He said: “3rd wave up to dwarf the 2017 move and should persist for several years.” Michael Novogratz, the billionaire Bitcoin investor, also said that Bitcoin has become an institutional asset along the way.
In recent months, more institutions, hedge funds, and investment banks have started comparing BTC to gold. Novogratz said on CNBC: “Bitcoin is now an institutional asset. Period. The good thing is most institutions aren’t in yet. It’s why 2021 will be as good or better than 2020.”

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