However, on-chain data indicated a new trend among large Bitcoin (BTC) investors when it crossed $16,000. Bitcoin (BTC) is presently trading at $15,829.
A group of analysts from Whalemap described the recent surge in demand for Bitcoin from Whales as “institutional FOMO.” FOMO, the acronym for “fear of missing out,” refers to a trend wherein investors increasingly buy into an asset fearing it will continuously surge.
However, when Bitcoin crossed $16,000, a new trend emerged among the whales as various on-chain data started pointing at a whale-induced BTC sell-off. Many reasons make $16,000 an eye-catching area for sellers, first, $16k is a heavy resistance level, Bitcoin suffered rejection at this level on at least two counts in 2017. Second, there is significant liquidity at $16,000 owing to resistance. Stablecoin inflows also indicate $16k has seen relatively high buyer demand, hence, the tussle between bulls and bears at $16K makes it an area with high liquidity, which is compelling for sellers.
A pseudonymous trader CL noted that on Nov. 15, a Bitcoin (BTC) whale placed a $100 million short on Bybit. Also, there are Increasing signs of whales taking profits as order flows show that there were sell orders worth around $3.5 million on average consecutively over several hours.
Whales profit taking is also seen as exchanges like U.S. based Gemini have seen large deposits over the last 24 hours. CryptoQuant puts inflow into the Gemini exchange at 9,000 BTC noting that exchanges such as Coinbase and Gemini are preferred by Whales due to their strict compliance and strong regulatory measures.
On the massive BTC inflow into Gemini, which is worth $143 million, a pseudonymous researcher “Blackbeard” said it is time to be cautious.
