Bitcoin (BTC) price increased by $ 15,500 on November 11 after whales sold the largest amount of bitcoin since March. In previous cycles, the prevailing cryptocurrency would usually accumulate after it was sold by the whales.

On March 12th, for example, the All Exchange Flows Index (MA7) reached 3. At that time, BTC fell to $ 3,596 on BitMEX after seeing the streak liquidations.

Since then, the MA7 has never risen above 1.7. Nov. 11, for the first time since March, approached MA7 2. This indicates that the whales have sold a large amount of BTC in recent days.

Why does Bitcoin Big Sale signal bullish trend?
Bitcoin whales or wealthy people with large amounts of BTC don’t necessarily cut BTC because they are bearish.

Many whales prefer to make a profit during the upward move and build positions along the way. This is because whales trade in much larger positions than most traders. As such, they are looking for liquidity and higher demand from buyers to sell or adjust their positions.

Bitcoin is trending higher after the whale-driven sell-off as it reduces selling pressure on the cryptocurrency in the short to medium term.

While the Bitcoin market has become more balanced between traders, institutions and whales, the wealthy continue to influence the market.

Ki Yong Joo, CEO of CryptoQuant, confirmed that Bitcoin has historically grown since “victim whales” deposited BTC on exchanges. he wrote:

Buy-Fall Index. Buy BTC when victims hit stock markets after a fall. ”
Bitcoin experienced extreme volatility last week, possibly due to whales making a profit. However, each major drop has been bought aggressively by other whales and private investors.

BTC posted a big drop on November 8, November 10 and November 11. Bitcoin made a strong comeback after each drawdown and returned to previous support levels for several hours.

The series’ fundamentals are also very positive
Aside from Bitcoin’s preferred technical structure, the underlying chains indicate a bullish outlook overall.

According to Glassnode, the number of active Bitcoin addresses reached a multi-year high. Elias Seamus, Protocol Director of Bison Trails said:

“Did you know that active BTC headlines reached a multi-year high this week and are now at their highest level in January 2018? During the entire network’s history of just 1.5 months, the percentage was over a million. What about it.”
Daily active addresses are an important math on the Bitcoin network, as they can point to two important directions.

First, individual investors can collect more BTC and transfer it to their personal portfolios. This indicates an intention to keep Bitcoin for a longer period.

Second, the number of OTC transactions may increase, particularly between whales and high net worth individuals.

The combination of positive fundamental and technical trends increases the likelihood of a broader meeting before the end of the year. With a halving of just six months ago, chances for a more robust trend remain high.

Source: CoinTelegraph