Since hitting a record high, the price of Bitcoin has been unable to break through $19,400 to gain support. This is most likely due to the possibility that the whales may sell heavily in the range of $19,400 to $19,600 to prevent the historical high from being broken. Above all-time highs, there is almost no resistance until a new upper limit is reached.
Bitcoin whales flow into exchanges Source: CryptoQuant
Whenever BTC approaches its all-time high, the whale will continue to sell
Data from CryptoQuant and Whalemap indicate that the $19,500 level is an important area for whales.
First, the price of a large whale cluster is around $19,500. This means that the whale bought BTC here and did not transfer its holdings, which may make it a profitable area.
In addition, with the price of Bitcoin exceeding $19,500, the amount of Bitcoin flowing into the exchange by whales has been increasing. This indicates that the whales are selling Bitcoin vigorously, or short selling at a price of $19,500 or even higher.
An anonymous trader named “Byzantine General” also emphasized that there are a large number of sell orders on Binance. He pointed out that the $19,500 level will be a resistance level that buyers will find difficult to break through.
Binance is playing a prank again, and it will be difficult to break through $19,500. –Byzantine General (@ByzGeneral), December 3, 2020
What will happen to Bitcoin in the short term?
In the short term, analysts have mixed views on Bitcoin’s short-term prospects. Some people say that Bitcoin may still undergo substantial corrections, especially if Bitcoin continues to be rejected at the $19,500 level.
Ki Young Ju, CEO of CryptoQuant, said he expects Bitcoin to trade sideways or fall in the short term. He wrote:
“I am bullish on Bitcoin for a long time, but I think it will consolidate for a few days or be corrected. I think it is unlikely that Bitcoin will exceed $20,000 in the short term. I expect it will exceed $20,000 by the end of this year. All in all, some whales I stopped hoarding coins and I am short-term bearish.”
Ki pointed out that Bitcoin whales no longer hoard Bitcoin at current prices. He explained that it is difficult to separate institutional buying from spot buying. However, he said that the stagnation of Bitcoin’s rebound coincided with the timing of the whale’s selling. He added:
“This $20,000 battle will be a contest between Bitcoin whales and retail investors. I am short-term bearish. I know that the data on the chain cannot indicate that institutions are buying spot. But it seems that the current Bitcoin whale has stopped. A move favorable to the rise.”
According to data from CryptoQuant, the number of bitcoins flowing into exchanges by bitcoin whales is the largest since July. This data is consistent with the continuous rejection of Bitcoin prices at $19,400.
