Are big holders expecting a larger drop?

Published on by Cointele | Published on

A Bitcoin whale placed a $100 million short on Bybit, according to the pseudonyms trader CL. It comes after various on-chain data points toward a whale-driven sell-off throughout the past week.

Though the momentum of Bitcoin remains strong, there are many reasons that make $16,000 an attractive area for sellers.

The battle between buyers and sellers at $16K makes it an area with high liquidity, which is compelling for sellers.

A seller aggressively sold Bitcoin on Bybit on Nov. 15.

Order flows show that there were sell orders worth around $3.5 million on average consecutively over several hours.

Based on the abrupt large-scale sell order, CL suggested that this may result in two scenarios.

First, the seller could get engulfed and cause a squeeze, which might cause the BTC price to increase.

"Approx 2 hours ago, someone aggressive sold almost ~100M on Bybit, a 3rd of the sells are opens, personally pretty curious to see what happens if this seller/shorter does get engulfed, or if he is let free."

As CL noted, Bitcoin's current market structure is different from the previous cycle.

Bitcoin has continued to see a staircase-like rally over the past six months, which has allowed it to evolve into a prolonged uptrend.