Bitcoin price falls below $ 16,900 as whale populations rise again

189
SHARES
1.5k
VIEWS
ADVERTISEMENT

Related articles


Bitcoin (BTC) price fell again below $ 16,900 on November 27 on top exchanges, including Binance. The recent pullback is due to the fact that deposits on whale exchanges began to rise.

Ki Young Ju, the CEO of CryptoQuant, reported that the All Exchange Inflows Mean indicator has reached the “danger zone”. In the past, this has caused BTC to suffer short-term corrections.

Bitcoin is struggling to regain traction above $ 17,000

After the price of Bitcoin briefly fell to USD 16,200 on November 27, the first signs of recovery began to appear. It stayed above the $ 17,000 level for over 11 hours before going down another leg.

BTC / USD 1-day chart (Bitstamp). Source: trade view

After the sharp decline in Bitcoin, a low price range for volatility was expected. The earlier drop to $ 16,200 on November 26th decimated trading orders, particularly in the futures market. Futures contracts valued at hundreds of millions of dollars were liquidated within hours, Cointelegraph Markets reported.

All exchange inflows reach the danger zone. Source: CryptoQuant

But as soon as whales started depositing BTC on exchanges, the price started falling. This suggests that there have likely been many traders who bought the slump in the derivatives market and could be squeezed out. Ki wrote on November 27th:

“BTC whales deposit on exchanges. I expect dumping in the short term. All market inflow averages (144 block MA) reached 2 BTC. I think we are in a danger zone. The price is likely to move sideways or down when whales are active on exchanges. “

Some traders, like the pseudonymous Bitcoin investor “Bitcoin Jack”, have predicted this scenario. He said investors would likely buy the dip quickly, which would result in another drop.

On Nov. 26, after predicting a blow-off top near the all-time high, the trader said:

“Fact Proven Another Time: If Price Corrects Bitcoin Style, Buy 90% Early And If Price Goes Down Sell The Bottom.”

Following the initial forecast, the trader also said that Bitcoin would likely fall or consolidate for a week before dragging up.

Where is the bottom

Expectations for the near term Bitcoin low point vary. Some traders expect the $ 16,000 level to be held while others expect $ 15,000 and even $ 14,000.

A pseudonymous trader called “Beatlorion” said a drop below $ 15,000 was possible. Although BTC may not be falling as low, the trader said it feels safer than shorting in this environment. He said:

“I closed my longs, I don’t trust this jump and I went back to the short position. Looking for a dump under $ 15,000. I expect something like this. I got stops just in case I’m wrong, but I feel better about shorting this out than craving. “

Popular bitcoin trader Tone Vays said on Nov. 25 that it expects bitcoin to drop even further to the support level of $ 14,000 at some point.

As reported by Cointelegraph Markets, that $ 14,000 zone should serve as crucial support as it marked the top of the bull cycle in the summer of 2019.