Bitcoin Price Returns To $16K Amid BTC Whale Selling Warning
Bitcoin (BTC) entered the Wall Street open higher on November 22 after setting a new two-year low.
The Thanksgiving buywall appears at $12,000
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it crossed the $16,000 mark again, after setting a low of $15,480 on Bitstamp.
Momentum took the pair to $16,189 before consolidating, marking gains of 3.7% from today’s lows.
Talk among analysts remained tied to the Digital Currency Group (DCG) family, including Grayscale, which is currently at the center of rumors of fallout from defunct exchange FTX.
To monitor resource materials indicators, a “guard move” bid at $12,000 could ultimately be what protected the market should a major capitulation occur during the Thanksgiving holiday.
“Over $300M in BTC bid liquidity between here and $12k,” commented a post by CryptoQuant contributor Maartunn.
“This new $70 million buying wall could be a guardrail for the holiday week, it could be related to speculation about a grayscale announcement or something else. In any case, we always keep an eye out for new bold shopping walls.”
Maartunn had uploaded a heat map of the Binance order book, showing various active buy and sell levels.
As Cointelegraph reported, downside targets for BTC/USD mostly focused on $14,000 or below as the week began.
BTC hodlers are feeling the pressure
Other growing concerns revolved around long-term holders (LTH) of Bitcoin.
Related: Cathie Wood’s ARK Invest adds more Bitcoin exposure as GBTC, Coinbase stock hits new lows
In its latest weekly newsletter, “The Week On-Chain”, research firm Glassnode warned that “non-trivial expenses” from old hands are increasing.
“Their supply has decreased by 84,560 BTC after FTX, which remains one of the most significant declines in the past year,” it noted, adding that the decline was “still ongoing.”
Likewise, the biggest BTC investors, whales, also distributed coins to the market, this came despite earlier data showing that certain entities had already started dip buying.
“The whale cohort is currently in a net distribution mode, sending between 5k and 7k in excess BTC to exchanges,” Glassnode added.
“Meanwhile, the flight of coins from exchanges of almost all cohorts is at an all-time high. The whirlwind effect of the FTX collapse continues to play out, and it remains to be seen how extensive the upset in investor confidence has been.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
