Bitcoin falls back below US $ 9000 and crypto whales know it
Again the price of Bitcoin experienced a relapse. But, some people wonder what the reaction of crypto whales is to it. Despite continued respect for an area close to US $ 9,050, the price of Bitcoin failed to remain bullish. Gradually, we see how Bitcoin sellers take over the scene, and people begin to wonder the impact of crypto whales on this event.
Highlights about Bitcoin
Recently there has been a new variation in the price of Bitcoin. This variation is contrary to the trend of the last days and the direction is down in the graph. That is, the volume of the graph shows the sharp increase in the bearish volume, thanks to a break in the area near US $ 9,050.
On this we could say that said setback on other occasions was the predecessor of a more pronounced fall; leading the price of Bitcoin to reach an important area of value located between US $ 8,810 and US $ 8,650.
Before that, an upward trend in Bitcoin predominated against the constant decrease in price during the months of September and part of October. However, the inability to switch to an uptrend quickly caused a situation of uncertainty that ended up destroying Bitcoin’s bullish outlook in the short term.
Even the movement is in full development, and could be extended a little more; However, it is difficult at this time to know how far it will go. Therefore, we should wait to analyze 4-hour candle closures, to try to predict future movements. Currently the price of Bitcoin is US $ 8809.48 according to Coinbase.
What happens with Bitcoin?
The control at the moment is of the sellers, so it is difficult to try to think that the price of Bitcoin is going to stop just in the area where it is located; although this is a quite probable situation.
Price changes in Bitcoin and other cryptocurrency markets continue to baffle traders and analysts alike, and a lot of explanations have been presented for this. However, one that interests us today is the relative to the action of crypto whales.
Crypto and BTC whales
The role of crypto whales within the Bitcoin ecosystem remains a incendiary discussion point. According to a new report from SFOX, a cryptocurrency trading platform, the effect of crypto whales in crypto markets is real.
In conventional trade, controls and balances improve the effect of large commercial positions in retail markets. But, the relatively short history of Bitcoin and random trading patterns present mixed evidence for analysts who measure the impact of large whales on price movements.
On this we could say that the increasing number of actors that influence the prices of cryptocurrencies, such as Bitcoin, makes it difficult to identify a probable cause unique to the observed price variations.
Indeed crypto whales can have an influence on the price of Bitcoin, especially if the amount they trade is gigantic. For example, at this time and as reported by Whale Alert, it seems that those whales that have been holding their coins for a while without doing anything with them, have decided to sell.
If that sale suddenly happens massively, the price of Bitcoin would simply plummet, thanks to an injection of BTC into the market that would increase the offer. All the movements reflected above show that since the report of the Bitcoin price drop, there have been constant sales of BTC in the market.
With this, what is sought is to recover the profits from the investments before it is too late. This is assumed by the fact that all transfers were directed from unknown wallets to exchanges.
If you are just entering the cryptocurrency market, or specifically Bitcoin, we recommend you stay out of these volatile movements.
That is, when the “Bitcoin tide” seems to be cloudy, and you are not sure what happens; We recommend that you are more than anything an observer to learn from these situations. It is these moments when you can experience greater losses thanks to ignorance.
In the meantime, you have to stay alert if something changes regarding the action of crypto whales; and if it is enough to put downward pressure on the price of Bitcoin.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.