Analytics Firm Proposes that a Planned Bitcoin Sale by Whales Likely Triggered Crash

Analytics Firm Proposes that a Planned Bitcoin Sale by Whales Likely Triggered Crash

Bitcoin (BTC) just underwent a 2018-like selloff after BTC whales sprang up at exchanges to profit on Thanksgiving eve. Data from blockchain analytics firm IntoTheBlock illustrated that whales dumped more than 93,360 BTC (worth around $1.6 billion) across several centralized exchanges after the benchmark cryptocurrency peaked around $19,500 two days ago. According to the analytics firm, the exit on Thanksgiving eve was a strategically planned move by whales.

This crash invariably consumed the rest of the cryptocurrency market as the industry lost about $69 billion in market valuation at press time.

The BTC slide was further precipitated by substantial fund outflow from OKEx, as many users of the exchange cleared their accounts following dissatisfaction with the exchange’s withdrawal pause. Records show that the recent selloff was the largest since the ‘Black Thursday’ crash earlier this year.

Meanwhile, an Amsterdam-based cryptocurrency trader and analyst, Michaël van de Poppe, maintains a positive outlook on Bitcoin despite the recent crash. He noted that this was likely just a healthy correction and that it was a decent opportunity for anyone looking to invest in BTC.

BTCUSD – 4-Hour Chart

Key BTC Levels to Monitor — November 27

Bitcoin is currently showing difficulty maintaining its footing above $17,000 after several failed attempts earlier today. However, the cryptocurrency has climbed above $17,000 once again at press time. It would be interesting to watch how it plays out from here.

On the other hand, the benchmark cryptocurrency has shown a decisive rejection of the lower-$16,000 region several times today as well, putting it in a mild consolidation mode. That said, we expect a healthy bounce to the crypto’s previous highs.

Meanwhile, our key resistance levels are at $17,200, $17,635, and $18,000. While our key support levels are at $16,500, $16,200, and $16,000.

Total market capital: $506 billion

Bitcoin market capital: $316 billion

Bitcoin dominance: 62.4%

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.