Bitcoin price suddenly drops 11% when whales deposit BTC on exchanges

Bitcoin (BTC) fell $ 1,000 in minutes on November 26th as an expected pullback hit the market near $ 19,500.

The price of BTC hits its low at $ 17,250

Data from Cointelegraph Markets and TradingView showed that the BTC / USD saw a lot of volatility overnight on Wednesday.

After hitting nearly $ 19,500 after hours during the day, There was a period of bearish indecision that ended in a strong sell. Bitcoin then rebounded from $ 17,250, capping daily losses to around 5%..

BTC / USD 1 hour chart. Source: TradingView
Bitcoin price suddenly drops 11% when whales deposit BTC on exchanges
Bitcoin price suddenly drops 11% when whales deposit BTC on exchanges

Many analysts had already warned that recent gains would lead to a retreatincluding CNBC host Brian Kelly and dealers Ton Vays, which on Thursday forecast a drop to $ 14,000.

Meanwhile, Several measurements have also indicated an imminent correction. Among them is the popular index for fear and greedwhich remained at record levels in November.

Index of fear and greed. Source: Alternative.me

The pressure to sell on the stock exchanges increases

The sudden drop in prices occurred parallel to the large-volume deposits made by investors on stock exchangespresumably with the aim of generating profits near Bitcoin’s all-time high of $ 20,000.

“The average deposits from all exchanges rose a few hours ago. Indicates that whales have deposited BTC dollars on exchanges in relative terms.”, summarized his Twitter followers Ki Young Ju, Creator of the CryptoQuant on-chain analytics resource.

“However, long-term on-chain indicators say that buying pressure prevails. I still think we can go over $ 20,000 in a few days. “

Cryptocurrency deposits on exchanges in November. Source: CryptoQuant / Twitter

Bitcoin fundamental indicators support future bullish theoryMining difficulties will increase 7.3% in three days and the hash rate will keep increasing.

At press time, BTC / USD was spinning around $ 17,900 after a modest rally from the local low levels.

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