Bitcoin dips under $37k – This group to the rescue?

Journalist

Posted: November 14, 2023

• Bitcoin’s liquidation surged once its price reached the $38k mark. 
• Market indicators were bearish on the king coin. 

Bitcoin [BTC] had a comfortable rally last month, which pushed its price by over 37%. However, things were quick to turn sour as the coin’s price went under $37k.

According to CoinMarketCap, BTC was down by more than 1% over the last 24 hours. At the time of writing, it was trading at $36,503.55 with a market capitalization of over $713 billion.

To add insult to injury, while the coin’s price plummeted, its trading volume increased by double digits — generally perceived to be a negative signal in itself.

Bitcoin at a critical level

AMBCrypto’s analysis of BTC’s liquidation levels revealed a key factor that could have played a role in its price drop. As per Hyblock Capital’s data, BTC’s liquidation level spiked when the king of cryptos reached the $38,000 mark.

As liquidation shot up, meaning that more investors took their money out, the coin’s price fell. This resulted in BTC’s value going under $37,000. However, while this might scare several investors, whales took a different approach.

Will whales’ confidence pay off?

As per Lookonchain’s tweet on the 13th of November, a whale withdrew 716 BTC worth over $26.5 million from the Binance [BNB] exchange.

This whale has accumulated 4,232 BTC thus far, worth more than $156.5, with an average buying price of around $31,452 and a press time profit of $23 million.

A whale withdrew another 716 $BTC ($26.5M) from #Binance 15 mins ago.

This whale has accumulated 4,232 $BTC($156.5M) since Oct 4, with an average buying price of ~$31,452 and a current profit of $23M.https://t.co/Bc6n1INxT7 pic.twitter.com/1aPsbRlJTZ

— Lookonchain (@lookonchain) November 13, 2023

This clearly indicated that the whale was confident in BTC and expected its price to rally in the weeks or months to follow. Upon further digging, AMBCrypto found out that a similar trend of buying pressure was visible from its on-chain metrics.

According to CryptoQuant, the coin’s exchange reserve was decreasing, meaning that buying pressure was high. The same fact was further proven by Santiment’s chart.

As per the data, BTC’s Supply on Exchanges plummeted over the last week. This happened while its Supply outside of Exchanges increased. Bitcoin’s Total Amount of Holders also rose in the last week.

However, surprisingly, the Whale Transaction Count dropped.

Source: Santiment

Read Bitcoin’s [BTC] Price Prediction 2023-24

Investors must thus remain cautious, as several market indicators suggested a further drop in BTC’s price. For instance, the MACD displayed a bearish crossover. The Relative Strength Index (RSI) was in the overbought zone as well.

These indicators, when analyzed together, spelled out the possibility of increasing selling pressure on the coin.

Source: TradingView