2018-like vibes came to haunt bullish bitcoin holders when whales showed up at cryptocurrency exchanges looking to take profits for a ‘filling’ Thanksgiving. Data shows that more than 93,000 BTC (around $1.56 billion) made their way to centralized exchanges after the primary cryptocurrency topped at $19,600.
Bitcoin Whales Throng Cryptocurrency Exchanges With 93,360 BTC
From November 25-26, it was a bloodbath for turkeys and the global cryptocurrency market. But why? Data from blockchain analytics firm IntoTheBlock shows that deep-pocketed bitcoin holders offloaded a record 93,360 BTC on numerous exchanges around the world. This amounts to around $1.6 billion.
This drop started as soon as whales began to deposit BTC to exchanges. More than 93 thousand Bitcoin’s were deposited into centralized exchanges. pic.twitter.com/ntq1yIlDeV
— intotheblock (@intotheblock) November 27, 2020
This, according to the firm, was happening for quite some time. It seems whales strategically planned an exit from markets on Thanksgiving eve.
The bitcoin outflows from OKEx also contributed to this activity, largely due to users moving out after being dissatisfied with the exchange’s lack of updates on the situation surrounding the withdrawal pause. Statistics point to the recent outflows as being the highest since the ‘Black Thursday’ crash in March this year.
BTC Whales Show No Sign Of Backing Out From Selling
Commenting on the extensive bitcoin whale activity on exchanges, CEO and founder of cryptocurrency market analysis firm Crypto Quant, Ki-Young Ju said that BTC inflows into exchanges are still going on and are pretty high.
This amounts to an imminent short-term downward price movement or at least a round of sideways activity, according to Ju.
All Exchanges Inflow Mean(144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges.
He added that this is a ‘danger zone’ to be in and called out traders to exercise sufficient caution while placing bets.
A Healthy Correction?
Noted Amsterdam-based crypto trader and analyst Michaël van de Poppe took an optimistic angle towards the latest bitcoin sell-off.
Relax and zoom out, market is making a healthy correction and giving everyone a great opportunity to invest.
Don’t be impatient, the market will make a natural bottom to confirm it’s in. It just takes weeks.$BTC
— Michaël van de Poppe (@CryptoMichNL) November 27, 2020
Going by what Michael said, it does make sense that this correction is a way forward for a much higher rally. Bitcoin investors should inculcate the habit of holding through selloffs as making money off the BTC or any market for that matter never happens easily and demands dollops of patience.
Any asset after rides the highs trims gains as sellers always look for opportunities to leverage high prices to book profits. That’s when the bottom comes in and the path to the next high becomes clear. Right?