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

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The price of Bitcoin surged past $16,000 on Nov. 12 for the first time in nearly three years.

The recent dip reset the Bitcoin derivatives market.

On Nov. 10, the price of Bitcoin abruptly declined to as low as $15,072.

The drop benefited Bitcoin for two key reasons.

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

Even until late Nov. 11, the $16,000 area served as a heavy level of resistance for Bitcoin.

According to Edward Morra, a Bitcoin trader, there is an abundance of sell-orders near $16,000.

Despite the filing of large sell orders at $16,000, Bitcoin pushed through it due to repeated retests throughout the past week.

Despite extreme market volatility influenced by macro factors such as Pfizer's vaccine development, Bitcoin comfortably remained above $14.9K. The trend has shown that it has become a stable support level for BTC. Cameron Winklevoss, the billionaire co-founder of major Bitcoin exchange Gemini, emphasized the importance of BTC holding above the $14.9K to $15K support range.

"Bitcoin closed yesterday above $15K for the third day in a row. This is the first time in history that bitcoin has held this price level for 72 hours. A new record."

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