Bitcoin has undergone an extreme rally in recent days, climbing from $ 19,000 to $ 23,800 on top. The cryptocurrency has since corrected to $ 23,000 as consolidation has begun after this massive surge.
Records indicate that there were some whales that were not too thrilled with this meeting.
In fact, the order book data shows that a large amount of BTC was sold for the rally. However, the fact that Bitcoin held up so well shows the strength of the rally.
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Whales sold in the Bitcoin Rally
Data shows that whales have sold heavily to this Bitcoin rally.
A crypto asset trader shared the chart below after the rally. It shows that there were major sales walls in Bitfinex’s BTC markets during the rise. The chart shows that there were serious sales walls at virtually any price level starting at USD 20,000, showing how some market participants thought Bitcoin wouldn’t get much higher than it did.
Either that, or there were those who wanted to take advantage of the buying liquidity that was entering 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 get caught up in the volatility
Brian Armstrong, CEO of the leading Bitcoin exchange Coinbase, tells users not to 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 truly groundbreaking innovation and at Coinbase we look at the long-term market. While it’s great to see market meetings and news organizations turn their attention to this emerging asset class in a new way, we can’t stress enough the importance of understanding that investing in crypto is not without risk. First, crypto can use a volatile asset class – often more than the types of traditional financial instruments that most investors are used to. “
Yet many remain convinced that Bitcoin will rise even higher in the coming weeks.
There is a lot of Wall Street support for the leading cryptocurrency. With so much institutional capital coming into space, this market could rise in the coming years.
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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