Quick take:
- Bitcoin whales holding more than 1,000 BTC sold their bags at $19,300
- 11 of such whales sold enough to no longer be in the 1,000+ coin list
- Selling by whales is usually a tell-tale sign of a possible top
- A pull-back to the 50-day MA is possible before another push up by Bitcoin
Bitcoin (BTC) whales owning 1,000 or more coins sold a majority of their holdings after the local top of approximately $19,300. According to on-chain data from the team at Santiment, this category of whales offloaded their bags two days ago to the point where 11 of them, no longer belong to the 1,000+ coin category.
The team at Santiment shared their observations via the following statement and accompanying chart highlighting the drop in whales owning more than 1,000 Bitcoin.
$BTC whales with 1,000 or more coins held (currently $16.7M or more) sold off nearly immediately after the $19.3k price top two days ago. 11 of these whales actually sold off enough to no longer be in this 1,000+ coin category, just as prices peaked.
Selling By Whales Could Confirm a Bitcoin Correction
The selling of BTC by Bitcoin whales could be a confirmation of the beginning of a correction for the King of Crypto. To note is that Bitcoin has been in bubble territory since it broke $15k.
Its impressive parabolic run since the beginning of October (from $11k) has been due for a correction for quite some time.
Bitcoin’s 50-Day MA Could Provide Adequate Support
Popular Bitcoin analyst, MagicPoopCannon, had earlier pointed out that $13,800 was a plausible area for a Bitcoin bounce if there was a correction.
Furthermore, and in his most recent analysis of Bitcoin, he highlighted the importance of the 50-day moving average in maintaining Bitcoin’s bullish momentum.
While I do think there is a high probability that BTC will remain in an uptrend, we could see it fall deeper… At this point, it’s important to watch the 50 day moving average (in orange.) If BTC comes in contact with the 50 day, it is very likely to act as support, especially considering all of the hype and excitement around Bitcoin right now.
At the time of writing, Bitcoin’s 50-day moving average is slightly above the $14,500 price area and will be an area of interest, if Bitcoin were to finally correct before the end of 2020.
