Bitcoin Corrected Below $ 16,900 Again Amid Growth of Whale Deposits
Bitcoin price declines again this Friday after volatile Thursday. Yesterday, the cryptocurrency fell by almost $ 3,000 to the lower ranges of levels of about $ 16,000, but at night it managed to win back positions to $ 17,400. Now bitcoin is traded again at about $ 16,800.
As the CEO of the analytical platform CryptoQuant Ki Yong Joo notes, the indicator of the inflow of assets to the exchanges was in the “danger zone”, which historically corresponds to the short-term correction.
Along with the liquidation of $ 2 billion, yesterday’s move knocked out holders of high-leverage margin positions, and traders are gearing up for more limited volatility in the near future..
Nevertheless, the resumption of exchange-traded deposits of “whales” was a harbinger of a new decline. Zhu expects them to try to push long holders who added them amid yesterday’s pullback.
“Bitcoin whales make deposits on exchanges. I expect a dump in the short term. A sideways trend or decline is likely when whales are active on exchanges, ”he writes..
An analyst at BTC_JackSparrow previously expressed a similar thought: “A time-tested fact: when the price corrects in the style of Bitcoin, 90% will enter too early, and when the price goes lower, they will sell at lows.”.
He expects Bitcoin to fall for another week with the aim of collecting liquidity at lower levels, followed by a sharp rise to all-time highs for the rest of the year..
Traders cite various targets as short term lows, mostly between $ 16,000 and $ 14,000. “Closed my longs. I did not believe this rebound and re-entered a short position. I expect a fall below $ 15,000. I set stop orders in case I am wrong, but to be in a short position now seems to me a better decision than in a long one, ”writes one of them.