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.
Are big holders expecting a larger drop?
Published on Nov 15, 2020
by Cointele | Published on Coinage
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.