The price of Bitcoin has been in a steadily rising trend for months now, but a sudden, sharp sell-off has turned the crypto market into a sea of red today. Before the market turned red, a whale was spotted moving a substantial amount of BTC to a popular cryptocurrency exchange, raising reserves to the highest level all year round. Since the deposit, almost 20% has been deducted from the price of the main cryptocurrency by capitalization boursière.
Here's how the on-chain data might have called the move ahead and what techs are saying about the Bitcoin bull run right now.
Whales move 28,000 BTC worth $ 1.6 billion ahead of sale
Yesterday as The price of Bitcoin established records and approaching $ 60,000, a whale made a massive deposit of 28,004 BTC to the cryptocurrency exchange owned by the Winklevoss twins Gemini .
A whale transferred 28,000 BTC from 'worth $ 1.6 billion at the time in Gemini | Source: CryptoQuant Alerts Beta
Quantitative cryptocurrency analysis platform CryptoQuant issued an alert on cumulative flows to Gemini around 2:30 p.m. ET, and warned of the risk of potential dumping. Hours later, price action began to move lower. RELATED READING | BITCOIN MARKET LE HIGH CAP OF 1 TRILLION DOLLARS FOR THE FIRST TIME
Entries marked the highest level of BTC hitting foreign exchange reserves all year, and of the day overnight, the decline continued deeper. Ahead of the New York market opening this morning, Bitcoin fell as low as $ 47,600 for the first time in more than a week, as shown below.
It's unclear how many of the 28,000, worth around $ 1 billion an hour, were sold or left to take away, but the market has now been shaken .
A huge red candle on the daily was left behind following the deposit of 28,000 BTC | Source: BTCUSD on TradingView.com
Techniques suggest uptrend remains in Tact, whales cannot turn the tides
Bitcoin price suffered a deep plunge early this morningn, shaving 17% off the price by BTC. Bitcoin has seen a strong bullish trend, and despite the whale-induced selloff, there are several levels of support that still hold or remain intact.
If the steepest rise in the end (dotted) line fails, a fall to the next (dotted) trend line could follow. The dotted trend line coincides with the horizontal support at $ 40,000 and would represent a decline of around 32%. The previous correction, from $ 42,000 to $ 28,000, was only a 30% drop, and all buyers could allow it from past bull markets .
Several support lines remain for buyers to take a position at | Source: BTCUSD on TradingView.com
Losing the dashed trendline and $ 40,000 would not mean the whole trend is over. The support at 30,000 $ could be retested, which would also be the lowest (solid) uptrend line.
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The correction takes place in particular at the level of the blue dotted line, which was also a "top" in August, as well as weeks ago at $ 42,000.
Featured Image from Deposit Photos, Charts from TradingView.com