Bitcoin (BTC) finally managed to reach a new full-time high, but the digital asset fell almost $ 20,000. Network analysts say the massive sale of whales and miners, combined with the $ 20,000 resistance level, caused a sharp drop.
What made whales and miners sell bitcoins?
For whales and high-wealth investors, liquidity is the most important factor. Since they handle large orders, they have to take into account the delay that their sales orders will cause.
Usually the best time to sell whales is when the market is experiencing a peak of euphoria, which corresponds to strong demand from consumers. This allows whales to sell the property more efficiently without causing dramatic volatility.
When the price of Bitcoin officially exceeded the all-time high on Coinbase, market sentiment became very optimistic. The whales began to sell shortly after, leading to serious playoffs on major stock exchanges.
CryptoQuant CEO Ki Yong Joo explained that whale outflow slowed on November 30. And he said:
“I called the sale of miners, the activity of whales on the stock exchanges and refused to sell whales as a short-term recession. But I knew that the stock exchange’s stable foreign exchange reserves by this year would exceed $ 20,000. If ATH declines, it could be a major downturn as whales actively sell BTC. ”
The merger of whales that have BTC on the stock exchanges, which means increased pressure from sellers, as well as sales from miners, has exacerbated Bitcoin’s decline.
Key also noted that whales have begun listing bitcoins again on stock exchanges, which happens when whales want to sell their assets.
Is the current recovery just a dead cat?
BTC recovered quickly after falling to around $ 18,200 and rising above $ 19,400 in a matter of hours.
Perhaps the rapid recovery was due to the recession. When the price fell, the stock markets saw the end game in a row. As such, BTC would probably have fallen more than it should have, not for the major liquidations.
For this reason, recovery has been as intense as growth. Sellers who sell late card positions can get tough when Bitcoin crashes, resulting in short-term pressure.
In the short term, Bitcoin can see two main scenarios. First, it can hold over $ 19,000, which will allow the derivatives market to cool down and have an open interest in recovery.
Second, BTC may continue to decline as traders expect an explosion after hitting a full-time high.
But the overall outlook for Bitcoin is still very bullish. Cryptocurrency trader Scott Melker has confirmed that this month’s candle for November closed at a full-time high for BTC, creating a positive long-term picture for BTC. He said:
“Last month closed completely at the previous peak of the monthly candlestick. This month closed at all times. Really flawless schedule. ”
In the short term, the main levels of support for Bitcoin are $ 18,200, $ 17,700 and $ 16,200. These areas are still home to large groups of whales, which could trigger a reaction from buyers.