Whales sell down during Bitcoin’s rally with the price hovering around $18,000, a long way from its all-time high set weeks ago. The 2020 rally could be coming to an end with the few tipping points caused by crypto whales that offload their coins but let’s look into it some more In the latest BTC news.
While things are turning bearish in the short-term, the whale-driven selloff is bullish for BTC in the long-run, and here’s why.2020 was Bitcoin’s year but DeFi and Ethereum helped to bring some positive momentum back to space with Bitcoin taking over from there. Once the momentum started moving, the $10,000 resistance was surpassed with ease. Once the key level was retested and defended by the bulls, FOMO started unfolding on the market and major companies like Microstrategy and Square started disclosing their BTC holdings with PayPal announcing support for the asset as well.
98% from the deposits are from the top 10 deposits. Right now, Whales are depositing heavily.
I'm expecting further downwards or choppy movement for the coming days.
— OneOfMany (@JA_Maartun) December 11, 2020
These events trigger a slight boost in the market sentiment but at the same time, the digital gold narrative started attracting hedge funds that were reallocating capital from cash and gold to BTC. As new money starts coming in, the old whales that have long held BTC since three years ago, are ready to sell. Whales sell down during the latest price rally which turned the bullish trend into bearish and slowed down the rally.
Whales got their name from the huge capital size which can make a huge splash and send waves crashing across the market which is exactly what drained the steam out of the 2020 BTC rally. According to data from Crypto Quant, 98% of the coins moved were from the top ten whale wallets and because of the size of the wallets, it took ten wallets to stop the bull trend. Whales caused a shift in the trend with their selling motion which could lead to the extended downside until more confidence rebuilds and the prices become attractive. It’s hard to imagine a new bullish situation but the bigger whales are selling and this is a sign of a potential bullish move in the near-term.
Bitcoin and other cryptocurrencies were designed to be decentralized but the entities that are big enough can influence the price. Satoshi designed BTC to get away from centralization but because of the way that wealth works, even BTC can’t fully avoid it. There are 10 BTC Wallets that are making a huge impact on the price which means decentralization is far off. However, because these wallets are selling to buyers that are willing to purchase it, the centralized wealth is slowly getting distributed.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]