Bitcoin Presently Trades at $18,672 Down by 4% on the Day.
Recent data unravel a trend amongst Bitcoin large volume holders – Whales keep selling each time BTC nears $19,500 and beyond. And who are the buyers? BTC whales appear to be selling to institutions.
Data from different sources indicate that while more BTC returned to exchanges, large-scale buyers are increasing BTC demand than what supply can meet.
Recent stats from on-chain analytics service Coin98 noted that Grayscale investments bought twice as much Bitcoin as miners could produce in November. Grayscale is creating a supply imbalance to which a price hike may be the subsequent result.
Bitcoin exchange holdings 3-year chart. Course: CryptoQuant
“Total accounts buying more than $1 million worth of Bitcoin and then moving it off of exchange has skyrocketed,” which may imply a ‘load up’ by rich investors.
Many analysts opined that phases of consolidation and pullbacks to retest underlying support are crucial to sustaining the strength of an uptrend. If Bitcoin is really in a bull market, investors will see major and minor pullbacks as opportunities to ‘buy the dip’.
In the near term, analysts have a mixed outlook on BTC price. Some say that a major pullback may still occur, especially if BTC continues to reject at the $19,500 level.
Ki-Young Ju, the CEO of CryptoQuant, said he expects BTC to trade sideways or down in the near-term. He stated:
“I’m long-term bullish, but I think it’ll go sideways for a few days or get corrected. I think we can’t break $20K in the short-run. I expect it’ll break 20k at the end of this year.”
Image Credit: CryptoQuant, Shutterstock
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