A Bitcoin whale just shorted $100M BTC — Are big holders expecting a larger drop?

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A Bitcoin (BTC) whale positioned a $100 million quick on Bybit, in keeping with the pseudonyms dealer CL. It comes after numerous on-chain information factors towards a whale-driven sell-off all through the previous week.

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

There’s vital 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 $16K 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 income

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

Based mostly on the abrupt large-scale promote order, CL instructed that this may increasingly lead to two eventualities.

First, the vendor may get engulfed and trigger a squeeze, which could trigger the BTC worth to extend. Second, it may 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, in keeping with the info from CryptoQuant.

Gemini BTC influx imply. Supply: CryptoQuant

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

Contemplating the big Bitcoin deposit into Gemini, which is price $143 million, a pseudonymous researcher referred to 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 10k, 15, into 20k, we had OKEx weekly futures commerce in 1000$ contangos, now we’re right here with quarterlies solely 100$ above.”