$15000 is Bitcoin price support actually and on-chain data signal that the rally may continue beyond $16,000.
After rejecting at $15,960 on Nov.6 Bitcoin (BTC) price has been defending the $15,000 price with strength. supported four on-chain data points, analysts believe the rally might continue beyond $16,000.
Analysts have pinpointed lower Bitcoin exchange reserves, unmoved supply, an increase in “stronger hands,” and unrealized profits as factors for the rally to continue.
The number of Bitcoin persisted exchanges drops
Recently, Delphi Digital, an independent cryptocurrency research and consulting company , released a report on the outlook of the Bitcoin market.
Paul Burlage, an analyst at Delphi, said that on-chain metrics generally portray strong momentum for Bitcoin.
Since Feb. 11, Bitcoin exchange reserves dropped from 2.96 million to 2.41 million. In dollar terms, a drop of 550,000 BTC is like $6.36 billion.
Falling Bitcoin exchange reserves is an optimistic occurance because it means fewer sellers are depositing BTC to exchanges. Burlage said:
“On Feb 11th, 2020, Bitcoin on exchanges hit its all-time high of ~2.96M. As of writing, Bitcoin on exchanges sits at ~2.41 M. This current trend has seen a divergence between bitcoin stock and price, which suggests a more sustainable move upwards for Bitcoin.”
Unmoved Bitcoin supply spikes
While fewer sellers are moving their funds to exchanges, the unmoved supply of Bitcoin price remains high.
On Sept. 9, Burlage explained that the share of unmoved supply for Bitcoin hit an all-time high at 63.5%. Since then, it’s declined slightly to 62%, but considering that price has risen substantially, it’s a positive metric. He explained:
“We have seen a small dip within the you look after unmoved supply within the past year over the past week. After reaching an all-time high of around 63.5% unmoved supply on September 9th, we currently sit at around 62.0%.”
This shows investors are increasing “HODLing” Bitcoin despite the recent rally, not taking large profits just yet.
No clear signs of a top yet
The number of “weak hands” or speculative buyers have noticeably declined in recent weeks, while stronger hands strengthened.
The flush out of short-term buyers and therefore the entrance of long-term “HODLers” indicate that Bitcoin could see a protracted rally.
This trend coincides with the resilience of Bitcoin above $15,000 and shows that the once heavy resistance level is on the brink of evolving into a support area. Burlage noted:
“While local maximums for ‘weak hands’ trends downwards, we will not confirm that the recent speculative base increase has formed a top. thereupon said, the larger trend suggests stronger hands are populating short-term age bands instead of speculators.”
Unrealized Bitcoin profits signal the rally may continue
In July 2019, the worth of Bitcoin peaked at around $14,000. At the time, Glassnode chief technical officer Rafael Schultze-Kraft said Bitcoin’s Relative Unrealized Profit hit 0.64.
Bitcoin Relative Unrealized Profit. Source: Glassnode
Currently, despite the worth of Bitcoin being above $15,000, the Relative Unrealized Profit is at 0.53. This shows Bitcoin price has the potential to ascertain a broader rally before a robust pullback.