Bitcoin Price Sinking Because of Whale Deposits?

Bitcoin price, which was enjoying a rapid rise to a possible all-time-high has come down in the last two days of trading with a recent pullback below $17,000 USD.

CEO of CryptoQuant Ki Young Ju attributes the sharp pullback to whale movements and he large-scale investors depositing their cryptocurrency to exchanges In the short-term, this “dump” of Bitcoin for profit might spell sideways trading before the market is able to pick a direction. As he noted:

$BTC Whales are depositing to exchanges. I expect dumping in the short-run.

All Exchanges Inflow Mean(144-block MA) hit 2 BTC. I think we’re in a danger zone. The price is likely to go sideways or down when whales are active on exchanges. https://t.co/eIfHdkIzdL pic.twitter.com/CenxR44h5Q

— Ki Young Ju 주기영 (@ki_young_ju) November 27, 2020

While experts have suggested that Bitcoin price might face a correction as retailers sell-off, the market might take a bearish turn. However, it’s possible that those investors trading out their tokens might represent the market shedding off new investors. If holders and long-term investors stick around, the market will be looking at healthy, sustainable increases in time.

Some traders believe Bitcoin will bottom at $16,000 USD – not far off the current price of the cryptocurrency – while others anticipate the price to decline further to hit prices around $14,000 USD. Cryptocurrency trader and pseudonymous analyst Beastlorion commented that he expects Bitcoin to hit below $15,000 USD. With more confidence in the short-term health of the market, he offered:

Closed my longs, I don’t trust this bounce and re-entered short position. Looking for a dump below $15k. Expecting something like this. I got stops just in case I’m wrong, but I feel better about shorting this than longing. $BTC pic.twitter.com/Os0qH2Vbwq

— Beastlorion (@Beastlyorion) November 27, 2020

At present, Bitcoin is trading at $16,782 USD – just 1.67% down in daily trading values.