Since hitting a new all-time high, Bitcoin (BTC) price hasn’t been able to reverse the $ 19,400 level to support. This is likely due to the possibility that whales in the $ 19,400–19,600 range are aggressively selling to keep from breaking the all-time high. Above the record high there is little resistance until a new cap is reached.
Whales are selling every time BTC approaches its all-time high
Data from CryptoQuant and Whalemap show that the $ 19,500 level is an important area for whales.
First, there are large piles of whale around $ 19,500. This means that whales bought BTC here and didn’t move their stocks, which could make it a take profit region.
In addition, flows of whales to exchanges have increased as the price of Bitcoin topped $ 19,500. This shows that whales are selling or selling $ 19,500 and up.
A pseudonymous trader named “Byzantine General” also emphasized that Binance has heavy sales orders. He noted that the $ 19,500 level would be a tough resistance area for buyers to break.
Binance is doing shenanigans again.
19500 will be hard to break. $ BTC pic.twitter.com/8LAQmAM47P
– Byzantine General (@ByzGeneral) December 3, 2020
What could happen in the short term?
In the short term, analysts disagree on BTC’s near-term prospects. Some say a bigger correction could come, especially if BTC continues to decline at the $ 19,500 level.
Ki Young Ju, the CEO of CryptoQuant, expects BTC to move either sideways or down in the short term. He wrote:
“I’m optimistic for the long term but I think it will go sideways for a few days or be corrected. I think we can’t break $ 20,000 in the short term. I expect it will break 20,000 by the end of this year. (I’m not a PA dealer) Conclusion: OG whales have stopped HODLing and I am bearish for a short time. “
Ki found that bitcoin whales stopped accumulating bitcoin at the current price. He explained that it was difficult to separate institutional bids from spot bids. Still, he said the timing of the BTC rally stall and the whale sell-off coincide. He added:
“This $ 20,000 battle would be $ BTC OG whales versus retail investors. And I’m on their side, bearish in the short term. I know that on-chain data does not reveal the inflow of institutional spot bids. But it looks like the current BTC whales (OGs) have stopped moving, which was good for the bull rally. “
Bitcoin (BTC) has seen the largest whale inflows since July, according to CryptoQuant. The data is consistent with the continued rejection of BTC at $ 19,400.