The adoption rate of cryptocurrency in Nigeria hits new highs and the price of Bitcoin has hit a more than 60% premium.
Despite nearing the all-time high several times over the past few weeks, the Bitcoin price has been battling to break through the barrier of resistance. Experts and analysts believe this could be owing to whales trading and selling off just before the cryptocurrency breaches the record high, between the $19,400 USD to $19,600 USD range.
Data collated from CryptoQuant and Whalemap seem to suggest that the $19,500 USD level (or between the $19,400 USD to $19,600 USD range) holds significance for whales to sell-off. Large whale clusters exist in the range, where they bought in at this price and have held their tokens without moving, trading or transacting their holdings. Clusters around this region risk major sell-offs to make a profit or break even on their initial investment.
The data by the analyst firms are backed up by whale investor inflows to exchanges as Bitcoin price hits the $19,500 USD region. This confirms that whales are shorting before Bitcoin is able to break its all-time high.
Will Bitcoin break $20,000 USD?
At present, it’s difficult to tell whether Bitcoin will see a correction to sink or whether it will launch beyond $20,000 USD. Traders and investors seem torn between what the short-term future of the cryptocurrency looks like. If Bitcoin is unable to break past the $19,500 USD level and continues to reject the test, it might become more and more difficult to break the resistance.
CryptoQuant’s Ki Young Ju sees the token moving towards bullish trends in the long-term, but thinks it will suffer bearish short-term trends before then. He offered that the battle between major retail investors selling off to make a profit and long-term Bitcoin bulls will have a short-term bearish outcome:
This $20k battle would be $BTC OG whales versus retail investors. And I’m on their side, short-term bearish.
I know on-chain data can’t tell the inflows of inst. spot bids. But it looks like current BTC whales(OGs) stopped their move that was good for the bull rally.
— Ki Young Ju 주기영 (@ki_young_ju) December 3, 2020