A Bitcoin whale simply shorted $100M BTC — Are massive holders anticipating a bigger drop?

A Bitcoin (BTC) whale positioned a $100 million brief on Bybit, based on the pseudonyms dealer CL. It comes after varied on-chain knowledge factors towards a whale-driven sell-off all through the previous week.

Although the momentum of Bitcoin stays sturdy, there are lots of causes that make $16,000 an attractive area for sellers.

There’s important liquidity at $16,000, primarily as a result of it’s a heavy resistance stage. However the stage has seen comparatively excessive purchaser demand, stablecoin inflows present. Therefore, the battle between patrons and sellers at $16Ok makes it an space with excessive liquidity, which is compelling for sellers.

Bitcoin orderbook on futures exchanges. Supply: CL, Exocharts

Rising indicators of whales taking earnings

A vendor aggressively bought Bitcoin on Bybit on Nov. 15. Order flows present that there have been promote orders value round $3.5 million on common consecutively over a number of hours.

Primarily based on the abrupt large-scale promote order, CL prompt that this may increasingly end in two eventualities.

First, the vendor might get engulfed and trigger a squeeze, which could trigger the BTC worth to extend. Second, it might proceed to use promoting strain on BTC. The dealer wrote:

“Approx 2 hours in the past, somebody aggressive bought nearly ~100M on Bybit, a third of the sells are opens, personally fairly curious to see what occurs if this vendor/shorter does get engulfed, or if he’s let free.”

In the meantime, different main exchanges have noticed giant deposits during the last 24 hours. United States-based cryptocurrency alternate Gemini noticed a 9,000 BTC deposit, based on the info from CryptoQuant.

Gemini BTC influx imply. Supply: CryptoQuant

Whales sometimes make the most of exchanges with strict compliance and robust regulatory measures, which embody platforms like Coinbase and Gemini.

Contemplating the massive Bitcoin deposit into Gemini, which is value $143 million, a pseudonymous researcher generally known as “Blackbeard” said it’s time to be cautious.

Simply weekend volatility?

As CL famous, Bitcoin’s present market construction is completely different from the earlier cycle. For example, when BTC was at $16,000 in 2017, the market was extraordinarily overheated with excessive volatility. The dealer said:

“Again in 2017, once we pumped from 10ok, 15, into 20ok, we had OKEx weekly futures commerce in 1000$ contangos, now we’re right here with quarterlies solely 100$ above.”