Bitcoin has seen an extreme rally in the past few days, climbing from $ 19,000 to $ 23,800 at all-time highs. The cryptocurrency has since corrected to $ 23,000 as consolidation began after that massive surge.
Data shows that there were some whales that weren’t too keen on this rally.
In fact, order book data shows that a large amount of BTC was sold in the rally. The fact that Bitcoin has held up so well shows the strength of the rally.
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Whales sold at the Bitcoin rally
Data shows that whales sold heavily in this Bitcoin rally.
A crypto asset trader shared the graph shown below after the rally. It shows that there were big selling walls in Bitfinex’s BTC markets during the surge. The graph shows that there were serious selling walls at virtually every price level above $ 20,000, which shows that there were some market participants who didn’t believe that Bitcoin would go much higher than it was.
That, or there were some who wanted to capture the buying liquidity that was coming into the market at that time.
Chart of BTC's price action over the past few weeks with an order book analysis by crypto trader Edward Morra (EdwardMorra_BTC on Twitter).
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Don’t let the volatility surprise you
Brian Armstrong, CEO of the leading Bitcoin exchange Coinbase, explains to users that they shouldn’t get too caught up in the volatility of the crypto asset market. He wrote in a blog post published yesterday:
“We believe that crypto is a really groundbreaking innovation and at Coinbase we see the market long term. While it’s great to see market rallies and see news organizations bring attention to this new asset class in new ways, we cannot stress enough the importance of understanding that investing in crypto is not without risk. For one, crypto can be a volatile asset class – often more so than the traditional financial instruments that most investors are used to. “
Even so, many remain confident that Bitcoin will continue to rise in the coming weeks.
There’s a lot of Wall Street support for the leading cryptocurrency. With so much institutional capital moving into the room, this market could continue to grow in the years to come.
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Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com Bitfinex Whales Sold Heavily Into This 25% Bitcoin Rally