Could Whales Be the Cause of Bitcoin’s Drop?

Could Whales Be the Cause of Bitcoin's Drop?

bitcoin network has hosted many “suspicious” whale movements over the past ten days. Movements of assets carried by addresses that have not been active for a long time are often interpreted as suspicious and frightening. It is noteworthy that addresses that have not been active since 2014 have re-operated.

From a technical point of view, 15,000 BTC entering the market at once can of course create a low and create liquidity problems. On the other hand, it would be a big mistake to say that the only drop in the markets is due to the movements of the whales.

Could Whales Be the Cause of Bitcoin's Drop?

According to CoinGlass, cryptocurrency market has seen more than $350 million in liquidations in the last 24 hours. While the amount may seem large and substantial, the gradual sale of 15,000 BTC in the market cannot result in such a large increase in liquidations. As we reported, the whales moved most of these legacy funds to the Kraken central exchange and likely sold it before a major price drop. Meanwhile, most experts believe the main reason behind the correction is due to the upcoming rate hike and continued strengthening of monetary policy.

What’s Next for Bitcoin and Cryptocurrencies?

bitcoin priceAs for the index, it continues to consolidate at its July levels and has yet to decline. Fortunately, the current price level corresponds to a strong psychological and historical support level that could sustain the leading coin.

Most sentiment indicators have turned to extreme fear, and Bitcoin’s Relative Strength Index shows that the asset is already oversold, but could drop further if a new source of selling pressure emerges in the market.

You can follow the current price action here.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.

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