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A Bitcoin whale placed a $ 100 million short position on November 15 after several hints of on-chain data about a whale-induced BTC sell-off over the past week.
A Bitcoin ( BTC ) whale placed a $ 100 million short position on Bybit, according to trader by name CL. This after several on-chain data pointed to a sell-off driven by whales over the past week.
Although the momentum for Bitcoin remains strong, there are many reasons that make $ 16,000 an attractive area for sellers .
There is significant liquidity at $ 16,000, mainly because it is a high level of resistance. But the level has seen relatively high buyer demand, stablecoin inflows show. Therefore, the battle between buyers and sellers at $ 16,000 makes it a highly liquid area, which is attractive to sellers.
Bitcoin order book on futures exchanges. Source: CL, Exocharts
A seller aggressively sold Bitcoin on Bybit on November 15. Order flows show that there were sales orders worth around $ 3.5 million on average consecutively for several hours.
Based on the abrupt large-scale sell order, CL suggested that this can result in two scenarios.
First, the seller could be overwhelmed and cause a contraction, which could cause the price of BTC to rise . Second, it could continue to apply selling pressure on BTC. The trader wrote :
"About 2 hours ago someone aggressive sold almost ~ 100 million on Bybit, a third of the sales are open, personally I am very curious to see what happens if this seller / shorter is overwhelmed, or if he is let loose."
Meanwhile, other major exchanges have detected large deposits in the last 24 hours. US-based cryptocurrency exchange Gemini received a deposit of 9,000 BTC, according to data from CryptoQuant.
Means of BTC entry into Gemini. Source: CryptoQuant
Whales often use exchanges with strict compliance and strong regulatory measures, including platforms like Coinbase and Gemini.
Considering the large deposit of Bitcoin in Gemini, which is worth $ 143 million, a researcher known as "Blackbeard" said that it is time to be cautious.
As CL pointed out, the current structure of the Bitcoin market is different from the previous cycle. For example, when BTC was at $ 16,000 in 2017, the market was extremely overheated with extreme volatility . The trader said :
"In 2017, when we went from 10,000, 15,000 to 20,000, we had weekly OKEx futures trades in $ 1,000 contangs, now we are here with quarterly only $ 100 above."
This time, the rally appears to be more sustainable and gradual. Bitcoin has continued to experience a ladder rally for the past six months, allowing it to evolve into a prolonged uptrend.
Instead of a sudden surge followed by another pronounced uptrend, BTC has seen a rise followed by a consolidation, and so on.
As Cointelegraph reported earlier this month, various data, including Google Trends, show that there is still little interest from retail investors unlike late 2017. On the other hand, there is growing evidence that Wall Street is just starting to take it into account .
So there is a strong argument that the current rally is fundamentally different from 2017 despite the current market sentiment of "extreme greed . " In particular, the available supply has decreased due to the recent halving, as well as reservations on exchanges during the past year.
Bitcoin futures funding rates are also neutral at around 0.01%, which means the market is not as overheated or overcrowded as it was three years ago. This trend could limit downside, especially in the medium term.
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