Bitcoin has undergone an extreme rally over the past few days, pushing from $19,000 to $23,800 at the highs. The cryptocurrency has since corrected to $23,000 as consolidation has begun after this massive thrust higher.
Data shows that there were some whales that were not too excited about this rally.
In fact, order book data shows that there was a large amount of BTC sold into the rally. The fact that Bitcoin held up so well, though, shows the strength of the rally.
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Whales Sold Into the Bitcoin Rally
Data shows that whales sold heavily into this Bitcoin rally.
One crypto-asset trader shared the chart seen below after the rally. It shows that there were large sell walls in Bitfinex’s BTC markets during the move higher. The chart shows that there were serious sell walls at basically every price level from $20,000 up, showing how there were some market participants that didn’t think Bitcoin would move much higher than it did.
That, or there were some that wanted to capture the buying liquidity that was surging into the market at the 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 Get Caught Up in the Volatility
Brian Armstrong, CEO of leading Bitcoin exchange Coinbase, is telling users that they shouldn’t get caught up too much in the volatility of the crypto-asset market. He wrote in a blog post published yesterday:
“We believe that crypto is a truly game-changing innovation and, at Coinbase, we take a long-term view of the market. While it’s great to see market rallies and see news organizations turn attention to this emerging asset class in a new way, we cannot emphasize enough how important it is to understand that investing in crypto is not without risk. For one, crypto can be a volatile asset class — often more so than the types of traditional financial instruments that most investors are used to.”
Even still, many remain confident that Bitcoin will move even higher in the weeks ahead.
There is much Wall Street support for the leading cryptocurrency. With so much institutional capital entering the space, this market could surge higher in the years ahead.
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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
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Author: Nick Chong