A Bitcoin whale simply shorted $100M BTC — Are huge 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 numerous on-chain information factors towards a whale-driven sell-off all through the previous week.

Although the momentum of Bitcoin stays sturdy, there are a lot of causes that make $16,000 a horny space for sellers.

There may be 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 consumers 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 earnings

A vendor aggressively offered 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 end in two situations.

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

“Approx 2 hours in the past, somebody aggressive offered 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 massive deposits during the last 24 hours. United States-based cryptocurrency trade Gemini noticed a 9,000 BTC deposit, based on the information from CryptoQuant.

Gemini BTC influx imply. Supply: CryptoQuant

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

Contemplating the massive Bitcoin deposit into Gemini, which is price $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 totally different from the earlier cycle. As an example, when BTC was at $16,000 in 2017, the market was extraordinarily overheated with excessive volatility. The dealer said:

“Again in 2017, after 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.”