The repeated falls of Bitcoin during this week that began on November 15, may have been caused by multiple reasons. However, there is no fundamental factor that is completely harming the trend of BTC. In keywords, it can be said that it is simply a setback that has occurred as a result of the technical scenario that is seen in the price action.
In recent days, Bitcoin has fallen from its all-time high of $69,000 to $55,600 according to Binance ; This is a significant loss of 15% in the last 2 weeks after the sale of 1,500 Bitcoins according to Blockchain reports. In addition, according to CoinMarketCap, a loss of 3.96% was recorded in the last 24 hours.
Bearish Triggers That Knocked Down Bitcoin Price This Week
First of all, it is important to note that a few days ago, the country of China reiterated its position against cryptocurrencies. This event occurred on November 17, and it is possible that it negatively affected the price of the cryptocurrency. However, this was not of great interest to the whales, as purchases continued to extend to today’s date.
Even when the all-time high was recorded at $69K, we can say that sales continued to be low; despite the departure of those 1,500 BTC. Furthermore, according to HODL Waves, the taking of profits by holders who bought in the last 12 months and after the 2017 ATH has not been executed.
In addition to this, the reports provided by HODL Waves show that the sales that have been executed during the last few days have been generated by old wallets that are simply taking part of their profits. However, diamond hands are likely to continue to buy during the decline.
In short, it’s no surprise that a market crash was coming; especially for the technical scenario of BTC. However, the aforementioned events accelerated the downward slide.
Bitcoin pulls back: What to expect in the short term?
There is tension in the market right now. Since the correction returned the BTC price to critical support, if it loses it, there may be a new wave of sales up to $50K; this is the main fear of some analysts, like John Wick, for example.
However, the technical scenario on the daily timeframe is not entirely negative, but traders expect the bulls to defend the aforementioned support; in the $56K. This is in line with the upper range of the ENV channels, and quite close to the 100 period EMA. Therefore, in case of taking positions on the upside, it may be ideal to monitor this level.
In addition to this, the RSI is below 50 points; exactly at 38. Which shows the high wave of sales generated, but at the same time, represents an opportunity to invest at lower prices.
It’s time to buy in the fall and the whales know it
While Bitcoin falls back, multiple whales and holders have taken the opportunity to invest millions in amounts again. Some of the most relevant being the following:
According to blockchain data, these purchases have been made by the wallets that accumulate the most BTC tokens. While the third wallet that owns the most BTC bought 207 bitcoins, the others added 484, 700, 1,123 and 1,647 BTC. And what are you waiting for to buy in the fall?
How much have investors withdrawn from the Exchanges?
Daily Bitcoin withdrawals are increasing as investors withdraw their holdings from exchanges.
Specifically, in three days, investors have withdrawn $1.3 billion worth of Bitcoin from exchanges.
Indeed, after hitting an all-time high, Bitcoin is currently trading at $58,800. This is recorded by our internal Crypto Online tool.
Very importantly, there is no indication of where the price will head as investors wait to see if the price holds the trend or corrects furthe.
$1.3 billion worth of Bitcoin leaves the market in just three days
This points to the market being in the “money accumulation” phase. In this phase, investors are buying as many assets as possible and then consolidating their holdings while waiting for better prices.
Instead of dumping all assets in anticipation of the bear market, investors sell BTC just so they can make strategic profits.
In particular, despite the recent correction in which Bitcoin lost approximately 20% of its value in a week, the data suggests that the liquidity crisis could be increasing.
In just three days, the Exchanges have seen more than 23,000 coins removed. Worth more than $1.3 billion.
In fact, the crypto analyst, Alí Martínez, described that the number of withdrawals had seen a dramatic increase in recent days. Regardless of the drop in the price of Bitcoin.
According to other data from Glassnode , they revealed that more than 17% of the total supply of Bitcoin (BTC) has been submerged. Which means that only 83% have remained in profit.
What do the analysts think?
In this regard, the analyst Credible Crypto indicated: « 19 months later, and here we are. It doesn’t really matter what kind of structure this wave forms. The purpose is the same, re-accumulation before the fifth and last wave of this bullish cycle ».
However, analyst Michael van de Poppe still believes that we are in a bull market.
« As a reminder, Bitcoin could even correct to 48-50K and remain bullish. I hope there will be a healthy correction ».
So, does market sentiment remain in greed territory, signaling buying pressures in the markets? Leave your opinion in the comment box.
I retire with this phrase from Leonardo da Vinci: » Whoever wants to get rich in a day will be hanged in a year .»
The information in this content should be taken for informational purposes only, not intending under any point of view to encourage the purchase / sale of financial assets.