A few days after Coinbase twice experienced technical difficulties during the BTC price spike moments, its data now suggests that there are too many active BTC whales on the spot exchange who might be waiting to cash in on an expected all-time high.
This is according to Ki-young JU, CEO of On-chain analysis data sites CryptoQuant. The CEO stated that historically when there are over 90% of active whales on Coinbase, BTC price usually goes sideways or bearish.
“Too many $BTC whales on $Coinbase. I’m still long-term bullish, but we might face some corrections or sideways until whales become inactive on spot exchanges. Exchange Whale Ratio is the relative size of the top inflows to total inflows.”
Will BTC Pullback or Continue To Rise?
Bitcoin is currently experiencing a lot of volatility above $18,000. The leading cryptocurrency by market cap is up 6.79% in the last 24 hours trading at $19,261.
A few days ago, Bitcoin dipped below the crucial $18,000 support level which led to analysts’ speculations that Bitcoin whales would sweep in and aggressively buy the dip. Bitcoin later regained its support level and rose above $18,600.
As previously reported, one of the main factors influencing BTC’s price rally is a higher demand than supply. The Bitcoin market is being driven by a supply shortage narrative with the total BTC circulating supply estimated at 18.5 million BTC and only 2.5 million BTC left to mine.
While Whales on Coinbase’s spot seem active, whale accumulation is still rising with more whales accumulating over 10,000 BTC at prices above $12,000. Bitcoin Billionaire Investor Michael Novogratz said:
“Bitcoin is now an institutional asset. Period. The good thing is most institutions aren’t in yet. It’s why 2021 will be as good as or better than 2020.”
How Low Is a Pullback Likely To Be?
According to crypto analyst Qiao Wang, there are three important factors that will determine whether Bitcoin will continue to rise or pullback.
“3 most important data points to look at IMO:
1) Are institutions still buying?
2) Are long term holdlers selling?
3) Is open interest (in BTC terms) Low?”
Data from WhaleMap also shows that in November, BTC whales have established three crucial support levels for Bitcoin’s price at $15,762, $16,278, and $17,422.
BTC also recorded a weekly high of $18,936 and a weekly low of $16,564. Following recent price retracement below $18,000, BTC’s short term pullback will have support levels at $17,300 and $16,411.