Key Takeaways
What is the main factor behind Bitcoin’s recent sharp price drop?
Bitcoin OGs and Megawhales have been selling aggressively, selling over $17,000 BTC and increasing the supply for sale.
What is Bitcoin’s short-term resistance and critical support level?
BTC must break the $111,513 resistance for a recovery or risk falling below the $106,124 support at $103,571.
Since hitting $116,000 a week ago, Bitcoin [BTC] has faced massive downside pressure and has fallen to a low of $106,000. In reality, At the time of writing, Bitcoin was trading at $107,758, down 2.79% from the daily charts.
Amid the bearish market in this market, large long-term investors have accelerated the downtrend by increasing the supply available for immediate sale.
Dumping Bitcoin OGs
While Bitcoin Struggles, Three OGs Have Sold 17,265 BTC, Which Is a Significant Reduction their belongings.
According to Look at chainBitcoin OG (1011short) has deposited 13,000 BTC, worth $1.48 billion, with Kraken, Binance, Coinbase and Hyperliquid.
The second whale, Owen Gunden, sold 3,265 BTC worth $364.5 million to Kraken.
Donkerfost also reported such whale activity – Notably, insider whale 19D5 (Hyperunit seller) sold 1000 BTC via Kraken.
Source: CryptoQuant
In total, the whale moved 2,455 BTC and deposited them in Kraken and Hyperunit, reducing his total holdings to 35,800 BTC.
Surprisingly, these three whales are not isolated as mega whales sell aggressively.
According to Checkonchain, the Megawhale Balance Change rose to 32.6k BTC on November 2 and then fell to 23.4k on November 3.
Source: Checkonchain
In total, Megawhales deposited 56,000 BTC on exchanges, more than they withdrew, reflecting the intense selling pressure.
When Megawhales turn to aggressive selling, this is usually the case reflects a lack of conviction from the market as they expect further downward developments.
Yet this cohort’s increased foreign exchange deposits increase the supply available for immediate sale, further increasing downside risk.
Which way for BTC?
According to AMBCrypto, Bitcoin has fallen sharply on the price charts amid aggressive selling by long-term whales.
As recently observed, increased sales of whales have historically led to lower prices. Therefore, these market conditions position BTC for more losses on its price charts.
If Megawhales and OGs continue to dump, BTC could break the $106,124 support and drop to $103,571. However, if retail sales, especially shrimp, accelerate their accumulation rate, they could provide some support.
By doing this, BTC will be well positioned to recover towards $111,513. This retail-driven recovery is dependent on positive macroeconomic data reaching the market.