Bitcoin Price Stabilizes Above $18,000 Despite Bearish Signals
Although the Bitcoin whales have withdrawn millions to exchanges recently, Bitcoin price has recovered and is heading, once again, towards all-time highs (ATH). Despite the fact that Bitcoin has not yet tested its ATH of $20,000, it has risen again.
As EarnForex reported last week, Bitcoin price plunged from nearly $20,000 to the support level of $16,300.
It is worthy of note that just before and after Bitcoin price staged a Thanksgiving correction, BTC had a number of bearish signals.
Bitcoin whales in search of quick profits
According to a tweet from “intheblock,” an analytics company, whales were making deposits of billions of dollars into centralized exchanges.
This drop started as soon as whales began to deposit BTC to exchanges. More than 93 thousand Bitcoin's were deposited into centralized exchanges. pic.twitter.com/ntq1yIlDeV
— intotheblock (@intotheblock) November 27, 2020
Also, a Whale Alert tweet on November 26 showed that Microstrategy, a Wall Street company transferred $658 million worth of BTC to an exchange.
— Chimp (@shitpostchimp) November 26, 2020
Both movements appeared bearish and its an indication that the Bitcoin whales were making preparations to sell.
Although those big players were boosting the price of Bitcoin, it is true that many of them had profits in mind. By November 27, it looked like the BTC whales were taking profits. A very brief drop to $15 billion suggested that.
Additionally, some were anxious about what the future of cryptocurrencies holds in the US For instance, the CEO of Coinbase, Brain Armstrong took to Twitter to address rumors that the US Treasury Secretary, Steve Mnuchin plans to pass crypto regulations before the tenure of President Trump ends.
All of these events could have impacted the price of Bitcoin negatively. However, the downtrend did not last long before the digital gold to recover and rally back up at full speed.
Bitcoin price recovers
Besides the $20,000 resistance level, a lot has changed since the bullish momentum of 2017 to question this uptrend. For instance, according to a Grayscale report, Bitcoin investors are not just speculators but are long-term adopters.
Also, some people today believe that the recent Bitcoin price drop is only temporary, especially knowing that the major players on Wall Street now own Bitcoin and that the Guggenheim Fund has presented documents suggesting it could invest up to 10% of its wealth in BTC.
What is more, Bitcoin has become more attractive to investors because of the covid-19 pandemic, fear of economic collapse, as well as the printing of money to support the world economy, including the US.
At the time of writing, Bitcoin price is hovering above $18,800 at 13:15 GMT on Bitstamp and could be considered bullish to start the week.
If you have any questions and comments on Bitcoin today, use the form below to reply.