Bitcoin Whale Just Shorted $ 100M BTC – Do Large Holders Expect Bigger Drop?


A Bitcoin (BTC) whale placed $ 100 million shorts on Bybit, according to alias trader CL. This comes after various data points on the channel towards a sale of the whales over the past week.While Bitcoin’s momentum remains strong, there are many reasons that make $ 16,000 an attractive area for sellers.

There is significant liquidity at $ 16,000 mainly because it is a high resistance level. But the level has seen relatively high buyer demand, as shown by the flow of stablecoins. Therefore, the battle between buyers and sellers at $ 16K makes this an area with high liquidity, which is convincing for sellers.

Bitcoin order book on futures exchanges. Source: CL, Exocharts

More and more signs of profit taking by whales

A seller aggressively sold Bitcoin on Bybit on November 15. Order flows show that there have been sell orders worth around $ 3.5 million on average consecutively over several hours.

Based on the large-scale sudden sell order, CL suggested that this could lead to two scenarios.

First, the seller could be engulfed and cause squeezing, which could cause the price of BTC to rise. Second, it could continue to put selling pressure on BTC. The merchant wrote:

“About 2 hours ago someone aggressive sold almost $ 100 million on Bybit, a third of the sales are open, personally quite curious to see what happens if this / shorter seller is swallowed up or if he is released. “

Meanwhile, other major exchanges have spotted large deposits in the past 24 hours. US-based cryptocurrency exchange Gemini has registered a deposit of 9,000 BTC, according to data from CryptoQuant.

Average Gemini BTC entry. Source: CryptoQuant

Whales generally use exchanges with strict compliance and strict regulatory measures, which include platforms such as Coinbase and Gemini.

Given Bitcoin’s large deposit in Gemini, worth $ 143 million, a pseudonymous researcher known as “Blackbeard” he told me it’s time to be careful.

Just the volatility of the weekend?

As CL noted, Bitcoin’s current market structure is different from the previous cycle. For example, when BTC was at $ 16,000 in 2017, the market was extremely overheated with extreme volatility. The merchant he told me:

“In 2017, when we went from 10k, 15 to 20k, we had OKEx weekly futures in contangos at $ 1,000, now we’re here with quarters just $ 100 above.”

This time around, the rally looks more sustainable and progressive. Bitcoin has continued to experience a stepped rally over the past six months, allowing it to move into a prolonged uptrend.

Rather than a sudden spike followed by another strong uptrend, BTC saw a rise followed by a consolidation, and so on.

As Cointelegraph reported earlier this month, various data, including Google Trends, shows that there is still little interest from retail investors unlike in late 2017. On the other hand, there is growing evidence that Wall Street is starting to realize this.

Therefore, there is a strong argument to be made that the current rally is fundamentally different from that of 2017 despite the current market sentiment of “extreme greed”. Notably, the available supply has decreased due to the recent halving, as well as the decrease in reserves on the stock exchanges over the past year.

Bitcoin futures funding rates are also neutral at around 0.01%, meaning the market is not as overheated or crowded as it was three years ago. This trend could make the decline limited, especially in the medium term.


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