Once again the price of Bitcoin has experienced a price relapse. However, some people do not yet know what the reaction of crypto whales may be.
Despite having constantly shown respect to an area close to USD 9,050, Bitcoin’s price failed to remain bullish. Gradually, Bitcoin sellers take control of the scene and people begin to wonder about the impact of crypto whales on this event.
Highlights about Bitcoin
Recently there has been a new variation in Bitcoin’s price that is contrary to the trend of recent days. There is a sharp increase in the bearish volume, due to a break in the area near USD 9,050.
On other occasions, this regression was the predecessor of a more pronounced fall, leading the price of Bitcoin to reach a value between USD 8,810 and USD 8,650.
Before that, a bullish trend in Bitcoin predominated against the constant decrease in price during the months of September and part of October.
However, the change into an upward trend quickly caused a situation of uncertainty that finally destroyed Bitcoin’s bullish panorama in the short term.
The movement is still 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, it is advised to wait to analyze 4-hour candlestick closures, to try to predict future movements.
At the time of writing this article, the price of Bitcoin is USD 8,758.75.
Crypto Whales and BTC
The role of crypto whales within the Bitcoin ecosystem remains an incendiary point of discussion. According to 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. However, Bitcoin’s relatively short history and random trading patterns present mixed evidence for analysts, who measure the impact of large whales on price movements.
In this regard, it could be said that the increasing number of factors influencing the prices of cryptocurrencies, such as Bitcoin, makes it difficult to identify a sole probable cause for the observed price variations.
Indeed crypto whales can influence Bitcoin’s price, especially if the amount that they trade is gigantic. At this time, as reported by Whale Alert, it seems that those whales that have been holding their cryptocoins for a while, without doing anything with them, have decided to sell.
If that sale suddenly occurred massively, Bitcoin’s price would simply plummet due to an injection of BTC into the market, which would increase the offer.
All those movements show that since the report of the drop of Bitcoin’s price, there have been constant sales of BTC in the market.
This is to ensure recovering the profits from the investments before it is too late. This is assumed by the fact that all transfers were made from unknown wallets to exchanges.
Novices in the cryptocurrency market, specifically Bitcoin market, should avoid these volatile movements. It is recommended observing very carefully to learn from these situations, since greater losses can be experienced due to ignorance.
It is also important to stay alert to changes caused by crypto whales and exert downward pressure on the price of Bitcoin.
By Willmen Blanco