Bitcoin price dives back under $16,900 as whale deposits spike again

The value of Bitcoin (BTC) dropped beneath $16,900 once more on Nov. 27 throughout prime exchanges, together with Binance. The current pullback comes as whale trade deposits began to extend.

Ki Younger Ju, the CEO of CryptoQuant, reported that the All Alternate Inflows Imply indicator reached the “hazard zone.” Traditionally, this brought about BTC to endure short-term corrections.

Bitcoin struggles to regain momentum above $17,000

After the worth of Bitcoin briefly dropped to $16,200 on Nov. 27, it began to indicate some indicators of restoration. It remained above the $17,000 degree for over 11 hours earlier than one other leg down.

BTC/USD 1-day chart (Bitstamp). Supply: Tradingview

Following the sharp drop of Bitcoin, a low volatility value vary was anticipated. The sooner drop on Nov. 26 to $16,200 decimated trade order books, significantly within the futures market. Tons of of tens of millions of {dollars} price of futures contracts have been liquidated inside a number of hours, as Cointelegraph Markets reported.

All Exchanges Influx Imply reaches hazard zone. Supply: CryptoQuant

However as quickly as whales started to deposit BTC to exchanges, the worth began to fall. This means that there have  doubtless been many merchants shopping for the dip within the derivatives market who may very well be getting squeezed out. Ki wrote on Nov. 27:

“BTC Whales are depositing to exchanges. I count on dumping within the short-run. All Exchanges Influx Imply(144-block MA) hit 2 BTC. I believe we’re in a hazard zone. The value is more likely to go sideways or down when whales are lively on exchanges.”

Some merchants, just like the pseudonymous Bitcoin investor often known as “Bitcoin Jack,” predicted this state of affairs. He stated that buyers would doubtless rush to purchase the dip early, main to a different drop.

On Nov. 26, after predicting a blow-off prime close to the all-time excessive, the dealer said:

“One other time indisputable fact: When value corrects Bitcoin model, 90% will purchase too early and when value goes decrease, promote the underside.”

Following up on the preliminary prediction, the dealer additionally stated that Bitcoin would doubtless drop or consolidate for per week earlier than it begins grinding upwards.

The place is the underside?

The expectations of the short-term Bitcoin backside varies. Some merchants count on the $16,000 degree to carry, whereas others anticipate $15,000 and even $14,000.

A pseudonymous dealer often known as “Beatlorion” stated a drop beneath $15,000 has turn into a chance. Though BTC may not drop that low, the dealer stated that he feels extra assured shorting than longing on this setting. He said:

“Closed my longs, I don’t belief this bounce and re-entered brief place. Searching for a dump beneath $15k. Anticipating one thing like this. I bought stops simply in case I’m fallacious, however I really feel higher about shorting this than longing.”

In the meantime, standard Bitcoin dealer Tone Vays stated on Nov. 25 that he expects Bitcoin to finally drop even additional to the $14,000 assist degree. 

As Cointelegraph Markets reported, this $14,000 zone ought to function essential assist, because it marked the highest of the bull cycle in summer season 2019.