Journalist
Posted:
- Bitcoin liquidation soared as the price reached it the $38,000 limit.
- The market indicators were bearish on the king coin.
Bitcoin [BTC] enjoyed a comfortable rally last month, causing the price to rise by more than 37%. However, things quickly turned sour when the price of the coin fell below $37,000.
According to CoinMarketCap, BTC is down more than 1% in the last 24 hours. At the time of writing, it was trading at $36,503.55 with a market cap of over $713 billion.
To make matters worse, while the price of the coin plummeted, trading volume increased by double digits – which is generally seen as a negative signal in itself.
Bitcoin at a crucial level
AMBCrypto’s analysis of BTC liquidation levels revealed a key factor that could have played a role in the price drop. According to Hyblock Capital’s data, BTC’s liquidation level peaked when the king of cryptos reached the $38,000 mark.
As liquidation increased, meaning more investors pulled their money out, the price of the coin fell. This resulted in BTCIts value goes under $37,000. While this might scare off several investors, the whales took a different approach.
Will Whales’ Trust Pay Off?
According to Lookonchain’s tweet on November 13, a whale withdrew 716 BTC worth over $26.5 million from Binance. [BNB] stock exchange.
This whale has amassed 4,232 BTC to date, worth over $156.5, with an average purchase price of approximately $31,452 and a press time profit of $23 million.
A whale withdrew another 716 $BTC ($26.5 million) from #Binance 15 minutes ago.
This whale collected 4,232 $BTC($156.5 million) since October 4, with an average purchase price of ~$31,452 and a current profit of $23 million.https://t.co/Bc6n1INxT7 pic.twitter.com/1aPsbRlJTZ
— Lookonchain (@lookonchain) November 13, 2023
This clearly indicated that the whale had confidence in BTC and expected its price to rise in the coming weeks or months. Upon further investigation, AMBCrypto found that a similar trend of buying pressure was visible from the on-chain metrics.
According to CryptoQuantthe currency’s foreign exchange reserve fell, which meant that buying pressure was high. The same fact was further proved by the map of Santiment.
aaccording to the data, BTCThe supply on the stock exchanges plummeted last week. This happened while off-exchange supply increased. The total number of Bitcoin holders has also increased over the past week.
Surprisingly, however, the number of whale transactions decreased.
Source: Santiment
Read Bitcoins [BTC] Price prediction 2023-24
Thus, investors should remain cautious as several market indicators suggested a further decline in the price of BTC. For example, the MACD showed a bearish crossover. The Relative Strength Index (RSI) was also in overbought territory.
These indicators, when analyzed together, pointed to the possibility of increasing selling pressure on the currency.
Source: TradingView