The price of Bitcoin is experiencing a volatile time.
Two key on-chain indicators show that whales and retail investors, in general, are not actively selling Bitcoin.
Ki Young Ju, CEO of CryptoQuant, told Cointelegraph: "The BTC Estimated Leverage Ratio on derivative exchanges is increasing till the election day. It might cause high volatility on BTC price due to cascade liquidations."
If short-sellers are increasingly betting against Bitcoin, yet BTC price increases, it can cause shorts to be liquidated one after another.
According to data from CryptoQuant, there is a low inflow of Bitcoin into exchanges in the U.S., meaning there is a lower risk of short-term selling from whales in the foreseeable future.
Clusters show areas where whales bought Bitcoin previously and are often considered to be support levels.
Because the price of Bitcoin is hovering below $13,650 as of Nov. 3, reclaiming $13,650 and staying above it would confirm it as a support level.
Two major variables to the short-term price trend of Bitcoin.
Since mid-October, Bitcoin miners have increasingly sold large amounts of Bitcoin.
Bitcoin saw its second-biggest negative mining difficulty adjustment change in history as miners stopped mining BTC en masse.
Bitcoin whales tread water and hodl despite recent BTC price drop
gepubliceerd op Nov 3, 2020
by Cointele | gepubliceerd op Coinage
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