Analysts say growing inflow of Bitcoin whales increases chances of BTC price correction

Deposits by Bitcoin whales are increasing as the price of BTC struggles to exceed $19,500.

Since reaching a new all-time high, the Bitcoin Billionaire price (BTC) has not been able to convert the $19,400 level into support. This is probably due to the possibility that the whales are aggressively selling in the range of USD 19,400 to USD 19,600 to avoid breaking the historical high. Above the high, there is little resistance until a new ceiling is formed.

Institutions buy Bitcoin at the $19,000 level while the GBTC premium reaches a 6-month high

Bitcoin whale entries to the exchanges. Source: CryptoQuant
Whales continue to sell every time BTC approaches a historic high

CryptoQuant and Whalemap data show that the $19,500 level is an important area for whales.

First, there are large groups of whales for about USD 19,500. This means that the whales bought BTC here and did not move their holdings, which could make it a profit-making region.

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In addition, whale entries to the exchanges have increased since Bitcoin’s price exceeded $19,500. This shows that whales are either selling heavily or are holding short positions at $19,500 and above.

A pseudonymous trader known as „Byzantine General“ also emphasized that there are large selling orders at Binance. He noted that the $19,500 level would be a difficult area of resistance for buyers to break.

Binance making mischief again.

The USD 19,500 will be hard to beat.

What could happen in the short term?

In the near future, analysts are divided on BTC’s short term outlook. Some say that a major correction could still occur, especially if BTC continues to reject the USD 19,500 level.

How high can the price of Bitcoin go?

Ki Young Ju, CEO of CryptoQuant, said he expects BTC to move sideways or downwards in the short term. He wrote:

„I’m optimistic for the long term, but I think it will move sideways for a few days or be corrected. I don’t think we can exceed $20,000 in the short term. I expect it to be over $20,000 by the end of this year. (Although I am not a price action trader) In conclusion, the old school whales stopped HODLing and I am short term bearish.

Ki pointed out that Bitcoin Whales stopped accumulating Bitcoin at the current price level. He explained that it’s difficult to separate institutional bids into cash bids. Still, he said that the timing of the BTC rally standoff and the massive whale sale coincide. He added:

„This battle for the USD 20,000 would be between the old USDBTC whales versus the retail investors. And I’m on their side, short term bearish. I know that chain data can’t indicate the inflows of institutional cash offers. But it seems that the current BTC whales stopped their movement, which was good for the bull run.

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Bitcoin (BTC) recorded the largest whale entries since July, according to CryptoQuant data. The data coincides with BTC’s continued rejection at the level of USD 19,400.