A large-scale investor, or Bitcoin whale, has just sold over $100 million USD, according to whale tracker and analyst user. The aggressive short comes after a major sell-off during the week, indicating a possible strong region for selling at the current price for Bitcoin.
According to Twitter analyst CL, the whale sold almost $100 million USD worth of Bitcoin on Bybit. As the analyst put it, the investor might “be engulfed” and cause a squeeze on the market or it could result in selling pressure on Bitcoin in the market:
approx 2 hours ago, someone aggressive sold almost ~100M on Bybit, a 3rd of the sells are opens, personally pretty curious to see what happens if this seller/shorter does get engulfed, or if he is let free. pic.twitter.com/vGtexS89lL
— CL (@CL207) November 15, 2020
Is Bitcoin at a prime selling point?
Bitcoin’s price trajectory in the short-term trading remains uncertain given the strong volatility at present. This means that the price could surge, meaning selling would be ill-advised or it could be about to hit a resistance level and possibly readjust with a slight decline, which would make this a great time to sell.
At around $16,000 USD, there is significant liquidity which is ideal for selling, however, there is a somewhat stable buyer demand for the token, making holding worthwhile.
Bitcoin Whales making deposits: Time to be cautious?
Despite major sell-offs, other leading exchanges have seen some massive deposits over the past day. According to data compiled by CryptoQuant, US-based exchange Gemini saw one 9,000 BTC deposit – making whale activity coming in. Transactions through Gemini is not surprising, given that large-scale investors commonly use platforms with strong regulations and safety mechanisms given their massive deposits.
While Bitcoin whales buying massive amounts of cryptocurrency, there is an immediately bullish note. However, the risk exists that there will be a major sell-off if the price is pushed up. As cryptocurrency trader commented, “be careful” regarding any FOMO that might come into play with market movements as Bitcoin whales buy or sell.
— Blackbeard (@crypto_blkbeard) November 14, 2020