Bitcoin (BTC) price dropped beneath the $eighteen,000 back up level on Nov. 22. This comes afterwards BTC continuously saw high over-the-counter (OTC) and institutional book throughout November.

BTC/USD 1-hr chart. Source: Tradingview

Data suggests that the growing institutional need was probable 1 of the main catalysts behind the BTC price rally to $xviii,965.

According to the data from Skew, Grayscale Bitcoin Trust'due south volume on OTC Markets increased significantly in the fourth quarter.

OTC Markets is a securities commutation in the U.Southward. that allows institutional and accredited investors to purchase diverse securities. The Grayscale Bitcoin Trust trades on OTC Markets, similar to an commutation-traded fund (ETF).

Grayscale Bitcoin Trust daily book. Source: TradingView.com

This is an institution-led Bitcoin rally

In that location is a articulate difference betwixt the ongoing uptrend and the 2017 rally. This time, Bitcoin has shown more than composure and stability throughout the uptrend, consecutively reclaiming major resistance levels.

Bitcoin saw a large spike in spot book, futures exchange open interest, and institutional need. Nonetheless, diverse metrics such equally Google Trends have shown the mainstream interest for Bitcoin is relatively low.

The combination of the two abovementioned factors suggests institutions accept likely been the master driving force of the recent rally.

The heavy involvement of institutions in a prolonged Bitcoin rally is optimistic because institutions are likely to accumulate BTC with a long-term strategy.

This trend explains why most of the major dips Bitcoin saw in November were aggressively bought upwardly. Every bit Cointelegraph reported, Dan Tapiero, the co-founder of 10T Holdings, said "big boys will buy dips now."

Tapiero also emphasized that real fundamentals are driving the ongoing rally, dissimilar the 2017 mania. He said:

"3rd wave upwards to dwarf the 2017 move and should persist for several years."

Michael Novogratz, the billionaire Bitcoin investor, also said that Bitcoin has get an institutional nugget along the way.

In recent months, more than institutions, hedge funds, and investment banks accept started comparing BTC to gold. Novogratz said on CNBC:

"Bitcoin is now an institutional asset. Period. The practiced affair is nigh institutions aren't in yet. It'southward why 2021 will be as good or better than 2020."

three whale clusters to watch every bit BTC dives below $eighteen,000

Whales, or high-net-worth investors, typically use OTC and exchanges simultaneously to accumulate Bitcoin.

Throughout November, analysts at the on-chain analysis firm Whalemap found the emergence of major whale clusters.

Whale clusters are price levels where whales buy BTC and do not movement their holdings. Clusters frequently signify areas where whales buy Bitcoin.

Bitcoin whale clusters throughout November. Source: Whalemap

The data from Whalemap show that $sixteen,411, $16,278 and $15,691 remain as the big whale clusters. Hence, even if BTC sees a short-term pullback, the aggressive accumulation from whales in November has established crucial back up areas.

In the nigh term, post-obit BTC's recent minor correction from $18,865 to below $18,000, whale clusters are expected to act as of import support levels. The $17,300 and $16,411 toll levels remain as the major back up levels.