3 reasons Bitcoin price got rejected at $11,500

The price of Bitcoin rapidly fell after surpassing $11,500 on Binance between Oct. 14 and Oct. 15.

As the trend of the U.S. stock market trend started to shift, Bitcoin recorded a sharp decline.

Within 15 minutes, BTC saw a 1.15% drop from $11,518 to $11,370.

According to the data from Skew, the correlation between Bitcoin and the S&P 500 has increased in recent weeks.

The data suggests that Bitcoin is currently perceived more as a risk-on asset over a safe-haven asset.

Before the initial drop from $11,540 to $11,280 occurred, many multi-million dollar short contracts appeared on BitMEX. Consequently, the open interest of BitMEX rose from around $397 million to $414 million, when the price drop happened.

The 3-hour chart of Bitcoin with key support levels.

Still, the medium-term prospect of Bitcoin remains positive, buoyed by optimistic on-chain indicators.

The rising number of investors holding onto Bitcoin, likely for a longer-term investment strategy, is a significant catalyst for BTC heading into 2021.

"Bitcoin accumulation has been on a constant upwards trend for months. 2.6M $BTC are currently held in accumulation addresses. Accumulation addresses are defined as addresses that have at least 2 incoming txs and have never spent BTC.".