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Are Bitcoin Whales Preparing for a New BTC Dump?

November 27, 2020 at 10:48 by Mark Stevenson

Bitcoin whales — investors or traders who own large amounts of BTC — are actively transferring coins from wallets to exchanges. According to the head of the analytical service CryptoQuant, Ki Yong-Ju, this serves as a signal for a new wave of Bitcoin sales in the near future.

The expert substantiated his claims by the transition of the indicator of bitcoin flows of large investors to exchanges in the “danger zone”.

As a baseline scenario, Ki Yong-Ju considers the correction/consolidation of the price of the flagship cryptocurrency in the coming days, followed by an upward wave and a breakdown of the $20,000 level in December.

Bitcoin price fell victim to leverage trading

Ki Yong-Ju previously said that the resumption of the withdrawal of funds from OKEx crypto exchange did not significantly affect the behavior of Bitcoin, since 83% of these assets went to non-exchange wallets.

As EarnForex reported on November 26, Bitcoin price plunged to $16,438 at around 08:51 GMT on Bitstamp, after the bulls failed to break the $19,500 level on November 25. At the time of writing, the digital gold is trading at $16,850 around 10:51 GMT on Bitstamp.

Bitstamp BTC/USD chart from TradingView.

One of the main reasons for the decline in the price of Bitcoin by about $3,000 was the massive liquidation of leveraged positions. The CEO of Stack Funds, Matthew Dibb said this in a conversation with CoinDesk.

The expert said:

Bitcoin has been the victim of massive liquidations of leveraged transactions on major derivatives exchanges.

However, Economist Alex Kruger is confident that the path of least resistance is upward for the Bitcoin price, and the latest sharp drop in price is nothing more than “noise amid a larger bullish trend.”

Bitcoin has yet to peak. I see many professional traders open positions in the first cryptocurrency. These are healthy positions because these market participants do not go all-in, but gradually add funds as the asset rises or falls.

If you have any questions and comments on Bitcoin today, use the form below to reply.

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