Bitcoin’s drop below $20,000 may cause a catastrophe on the market, but with this whale’s buying power, we may not see BTC dropping to it at all
The CEO of CryptoQuant offered a solution to a question regarding the cryptocurrency market: Will Bitcoin break below $20,000 or not? According to analystthere is a major reason why it won’t, unless some groups of traders want it to drop further.
The analyst’s foundation is the Finex whale, who owns at least $1.17 billion worth of BTC in open long positions. The whale has created massive support for the first cryptocurrency, which requires tremendous selling pressure to be broke, which simply will not appear without a certain group pushing the price of the cryptocurrency down.
The only group that can provide over $1 billion in pure cash is financial institutions on Wall Street who might be interested in buying digital gold at a deep discount.
While the market previously had a large potential seller represented by the Luna Foundation Guard, which owned billions worth of BTC, the market has no sellers that might push the price of the cryptocurrency down so badly.
Previously, the LFG reported a sale of over $2 billion worth of Bitcoin in the market. Such a large transaction was most likely made through market makers and/or OTC trading desks, as it would require liquidity that no exchange can offer on demand.
With no major selling pressure remaining on the market and most large sellers gone, Bitcoin and other cryptocurrencies should enter an accumulation phase after the massive distribution we saw in November.
At press time, BTC is trading at $29,909 and barely holding around the $30,000 support.
