3 reasons Bitcoin price just hit $16,000 for the first time since 2017

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The price of Bitcoin (BTC) surged past $16,000 on Nov. 12 for the first time in nearly three years. The momentum of the dominant cryptocurrency is strengthening due to three key major factors.

The main catalysts behind BTC’s rally are the non-overheated derivatives market, repeated retest of $16,000, and the $14.9K whale supply zone.

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The weekly chart of Bitcoin with percentage gains. Source: TradingView.com

The recent dip reset the Bitcoin derivatives market

On Nov. 10, the price of Bitcoin abruptly declined to as low as $15,072. The market drop occurred merely 24 hours after it saw another major dip to $14,805, which turned traders cautious.

But, the drop benefited Bitcoin for two key reasons. First, it allowed whales to take profit on their positions at around the $15,000 support level. Second, it neutralized the futures market by flushing out late buyers or long contract holders.

Resetting the futures market and the funding rate for Bitcoin futures contracts was critical for sustaining the ongoing BTC rally.