Bitcoin suddenly jumps above $ 11,000, experts see three reasons

Bitcoin unexpectedly climbs above $ 11,000, with three factors likely to support further upward movement.

Yesterday, Bitcoin ( BTC ) was surprisingly able to crack the $ 11,000 mark after the price initially slipped back to $ 10,500 at the beginning of October. The experts see three main factors for this trend reversal, these are:

Increasing accumulation by „whales“ or large investors, a surge in demand from institutional investors and the strength of the support at 10,500 US dollars.

Whales accumulate

As Cointelegraph reported earlier this week, the activity of the whale clusters suggests that there is currently strong demand from the BitQT and Ethereum whales. Whales are private investors who buy large amounts of a cryptocurrency.

The data from Whalemap shows that whales have been buying again since a Bitcoin rate of $ 10,370. The fact that support held at $ 10,570 on October 8th suggests that the whales bought most of the bitcoin between $ 10,407-10,570.

Since the whales make up a considerable part of the supply and demand in the Bitcoin market, the increasing accumulation by the large investors can be interpreted as an important catalyst.

Institutional demand is rising due to high-profile bulk Bitcoin investments

In the past two months alone, two billionaire companies have made large, high-profile investments in Bitcoin.

Initially, MicroStrategy disclosed that it had bought almost $ 250 million in Bitcoin on August 11. A little later, the software manufacturer announced that it had invested another 175 million US dollars in Bitcoin.

Payment service provider Square announced shortly after that it had bought Bitcoin for $ 50 million.

According to veteran trader Peter Brandt, Bitcoin’s daily and weekly charts are heavily “buy” after Square’s investment.

To this end, he emphasizes that it is a significant development for Bitcoin that large companies are now also investing in Bitcoin. So he writes :

“It’s a big deal that a global corporation now has #Bitcoin on its books. Weekly chart and daily chart are in a good position to offer another buying opportunity soon. “

The daily volume on the trading platforms for institutional investors, including LMAX Digital and Bakkt, has also increased continuously since August.

In addition to good fundamentals such as accumulation by the whales and a rising hashrate, the interest of institutional investors is further wind in the sails of the Bitcoin price.

Holds the $ 10,500 mark

The $ 10,500 mark has emerged as an important support for the market-leading cryptocurrency over the past three months. It also has an important historical meaning and was often a decisive threshold for short course cycles.

Technically, keeping the $ 10,500 mark is vital to the uptrend. The level was an intermittent high in July 2019, suggesting that BTC is using previous highs to build on these.