Bitcoin price has been in a steady uptrend for months now, but a sudden sharp selloff turned the crypto market into a sea of red today. Ahead of the market turning red, a whale was spotted moving a substantial amount of BTC to a popular cryptocurrency exchange, taking reserves to the highest level all year. Since the deposit was made, nearly 20% has been taken off the price of the leading cryptocurrency by market cap.
Here’s how on-chain data could have called the move in advance and what technicals are currently saying about the Bitcoin bull run.
Whales Move 28,000 BTC Worth $1.6 Billion Ahead Of Selloff
Yesterday, while Bitcoin price was setting records and nearing $60,000, a whale was making a massive deposit of 28,004 BTC to the Winklevoss twins owned cryptocurrency exchange Gemini.
A whale moved 28,000 BTC worth $1.6 billion at the time to Gemini | Source: CryptoQuant Alerts Beta
Cryptocurrency quantitative analysis platform CryptoQuant released an alert of the aggregated inflows to Gemini at roughly 2:30PM ET, and warned of the risk of potential dumping. Hours later, the price action began turning down.
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The inflows marked the highest level of BTC hitting exchange reserves all year, and overnight the drop continued deeper. Leading up to the New York market open this morning, Bitcoin dove as low as $47,600 for the first time in over a week as shown below.
There’s no telling how many of the 28,000, worth roughly $1 billion at the time, have been sold or left to go, but the market has now been shaken.
A massive red candle on the daily has been left behind following the 28,000 BTC deposit | Source: BTCUSD on TradingView.com
Technicals Suggest Uptrend Remains In Tact, Whales Can’t Turn The Tides
Bitcoin price suffered a deep plunge early this morning, shaving 17% off the price per BTC. Bitcoin has been in a strong uptrend, and despite the whale-driven selloff, there’s several layers of support that are still holding or remain untouched.
If the steepest uptrend line (dotted) fails, a fall to the next (dashed) trendline could follow. The dashed trendline coincides with horizontal support at $40,000, and would be a roughly 32% drop. The previous correction from $42,000 to $28,000, was only a 30% decline, and might all buyers will allow compared to past bull markets.
Several lines of support remain for buyers to take position at | Source: BTCUSD on TradingView.com
Losing the dashed trendline and $40,000 wouldn’t mean the entire trend is over. Support at $30,000 could be retested, which would also match up with the lowest (solid) uptrend line.
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The correction notably takes place at the blue dashed line, which was also a “top” back in August, as well as weeks ago at $42,000.
Featured Image from Deposit Photos, Charts from TradingView.com
