As expected – Bitcoin „finally“ drops by 11 percent, whales book profits
Bitcoin’s recent downturn meets the expectations of many experts, who see a major hurdle at $20,000.
Within minutes, Bitcoin (BTC) has slipped by $1,000 on today, November 26th, making the „long overdue“ return of the price at $19,500 a reality.
As the data from Cointelegraph Markets and TradingView show, Bitcoin suffered a sharp decline on Wednesday morning.
Having previously climbed almost to $19,500, the market-leading crypto currency initially entered a sideways Bitcoin Profit movement, which then turned into a downturn to $17,250. This puts the daily loss at just under 5%.
Many analysts had warned in recent days that such a response was long overdue. Among them were CNBC presenter Brian Kelly and crypto-trader Tone Vays, the latter even predicted a crash to $14,000.
Several key figures had also indicated that losses were imminent. One of the clearest warnings came from the so-called „Crypto Fear and Greed Index“, as the „fear barometer“ was at record levels in November regarding the „greed“ of crypto investors.
Whales want to write off profits?
The sudden downturn, which was therefore not very unexpected, came at the same time as large volumes of BTC were shifted to crypto exchanges. This could indicate that many of the larger investors want to write off their profits near the Bitcoin record high of $20,000.
The average value of capital inflows to crypto exchanges has increased in the last few hours. From this we can deduce that the major investors (whales) are moving their Bitcoin to crypto exchanges,“ as Ki Young Ju, founder of the crypto market research portal CryptoQuant, summarises the situation on Twitter. And further:
„However, the long-term figures show that the pressure to buy continues. So I think that in a few days, it will still be able to climb above 20,000 US dollars.
The fundamentals of Bitcoin underline this optimism, with the mining deficit expected to be adjusted by 7.3% in the coming days, which could lead to a further increase in the hashrate of the related block chain.
At the time of going to press, the Bitcoin exchange rate is close to USD 17,900 after a small recovery.