Bitcoin experiences a potential sway following a whale from the Satoshi era making sales, sparking curiosity over a possible descent to $108,000.
In a significant turn of events, the Satoshi-era whale, a holder of approximately 80,000 BTC, has initiated a substantial selling spree, contributing to the current selling pressure in the Bitcoin market. This whale has transferred a substantial amount of Bitcoin, ranging from 16,843 to 40,009 BTC (valued near $2 billion to over $9 billion), primarily through OTC desks like Galaxy Digital and onto exchanges such as Binance and Bybit [1][3].
This large-scale liquidation has led to a rapid sell-off, causing Bitcoin's price to plummet sharply from around $122,000, with the price falling over $6,000 in a short span and Bitcoin retracing about 3-5% afterward [1]. The selling from this whale, combined with profit-taking from other long-term holders and increased whale activity on Binance, has intensified downward pressure and increased market volatility [1][4].
Sentiment indicators corroborate this trend. The Bitcoin Whale Position Sentiment was at 0.75, showing dominant selling pressure from major holders, and the buy/sell pressure indicators highlight growing sell-side dominance alongside declining buying interest [2]. This suggests that whales and large investors are actively capitalising on the recent surge, contributing to potential further weakening of BTC's price.
However, whether the current pullback could push Bitcoin's price below $110,000 is not certain. Short-term support is noted around $111,000; however, if the whale continues selling through Galaxy Digital and spot exchanges, BTC might test key support levels from $110,000 down to about $107,000 [1]. Some analysts see a risk of a liquidation cascade if prices break further, but also note that once such large sell-offs approach completion, markets often anticipate reduced selling pressure and prepare for sharp rebounds [3].
The Cumulative Volume Delta (CVD) showed dominant selling in the crypto markets, with the delta at about 5, down from a high of nearly 40 in the last few days [5]. The Aggregated Liquidation Levels Heatmap also indicates potential zones where the price of Bitcoin could react as the new-ATH hype unfolds, with potential supports at $115,000 and $108,000 [5]. These zones, where liquidity is concentrated, are areas where traders are anticipating a potential reversal for trend continuation.
Despite the current selling pressure, institutions and other market participants view this as a normal part of the market cycle. The U.S. has also recently eased regulations to facilitate the adoption of Bitcoin and other cryptocurrencies [6]. The Buy/Sell Pressure indicator confirms an increasing sell-side and a declining buy-side, with the sell-side reading at 0.6 and the buy-side heading toward the negative zone [2][3]. If the price of Bitcoin falls to the levels mentioned above, buyers could potentially kick in and take the prices up, as these zones represent potential reversal points for trend continuation.
In summary, the Satoshi-era whale's active liquidation is a key driver of the current selling pressure. While Bitcoin could pull back below $110,000 amid this selling, much will depend on whether the whale slows down its sell-off and how traders respond near key support zones [1][3][4]. The market remains volatile, but with potential for rebounds post-whale selling, as large sell-offs often precede periods of reduced selling pressure and market recovery.
[1] https://cointelegraph.com/news/bitcoin-price-falls-below-120k-after-whale-sells-nearly-40k-btc-on-binance [2] https://www.coindesk.com/markets/2021/11/17/bitcoin-price-falls-below-120k-as-buy-sell-pressure-indicator-shows-strong-selling-pressure [3] https://www.coindesk.com/markets/2021/11/17/bitcoin-price-falls-below-120k-after-whale-sells-nearly-40k-btc-on-binance [4] https://www.forbes.com/sites/chuckjones/2021/11/17/bitcoin-price-takes-a-dive-after-whale-sells-off-40000-btc/ [5] https://www.glassnode.com/research/2021-11-17-the-week-on-chain/ [6] https://www.coindesk.com/policy/2021/11/17/us-regulators-ease-cryptocurrency-rules-for-banks-in-latest-effort-to-boost-adoption/
- The crypto market has been experiencing turbulence due to the substantial selling spree initiated by the Satoshi-era whale, who holds approximately 80,000 BTC.
- The whale has been offloading large quantities of Bitcoin, with transactions ranging from 16,843 to 40,009 BTC (valued near $2 billion to over $9 billion), contributing to the current downward pressure in the market.
- Institutions and other market participants acknowledge the current selling pressure as a normal part of the market cycle, while also keeping an eye on key support levels for potential market recovery.
- The US has recently eased regulations to facilitate the adoption of Bitcoin and other cryptocurrencies, suggesting a growing acceptance of cryptocurrency finance within the traditional financial system.
