Wednesday, November 25, 2020

Bitcoin price suddenly drops 11% as whales move BTC to exchanges

A Bitcoin price correction to $17,250 fulfills analysts' expectations as $20,000 all-time highs prove difficult to overcome.

Bitcoin (BTC) dropped $1,000 in minutes on Nov. 26 as a long-awaited pullback hit the market at close to $19,500.

BTC price hits $17,250 lows

Data from Cointelegraph Markets and TradingView showed BTC/USD experiencing major volatility overnight on Wednesday.

After nearly hitting $19,500 during the day’s trading, after-hours saw a period of bearish indecision that ended in a sharp sell-off. Bitcoin reversed at $17,250, capping daily losses of around 5%.

BTC/USD 1-day chart. Source: TradingView

Many analysts had already warned that the recent gains were due a period of consolidation, among them CNBC host Brian Kelly and trader Tone Vays, who on Thursday forecast a dip to $14,000.

Exchange selling pressure mounts

In the event, the downturn was less severe, but came in tandem with large-volume investors depositing BTC to exchanges — presumably with the aim of selling near Bitcoin’s $20,000 all-time highs.

“All Exchanges Inflow Mean increased a few hours ago. It indicates that whales, relatively speaking, deposited $BTC to exchanges,” Ki Young Ju, creator of on-chain analytics resource CryptoQuant, summarized to Twitter followers.

“But long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”
Exchange inflows 1-month chart. Source: CryptoQuant/ Twitter

Bitcoin’s technical indicators support the bullish theory going forward, however, with the mining difficulty set for a 7.3% uptick in three days’ time and hash rate continuing to grow.

At press time, BTC/USD circled $17,900 after a modest recovery from local lows.



from Cointelegraph.com News https://ift.tt/33fh24v

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