On Nov.26, the BTC price fell by over 10% as traders cashed in the massive run that saw the coin hit a peak of $19,497 on Wednesday. This price action saw BTC almost break the all-time high record of $19,666 set in December 2017.
The surge higher triggered a large number of whales and retail traders to transfer larger volumes of Bitcoin to exchanges. These trading platforms will allow investors to easily sell at a better price once the asset makes record highs.
However, failure to break set a record value resulted in a temporary cooldown according to Justin d’Anethan, the sales manager at crypto firm Diginex.
He explained that after failing to reach record highs, a rapid correction on the BTC prices was to be expected. More so, after the swift rally seen on Wednesday, many large investors were bound to book profits on their coin holdings.
Although the flagship digital asset has so far failed to breach the all-time high record and is currently seeing an intense sell-off, it remains one of the best-performing assets of the year.
Indeed, even after correcting lower by more than $2k earlier today, BTC is still up over 20% this month and by 138% on the year.
Are Hopes of A Bitcoin ATH Price Over?
Since the start of this year, BTC has soared from the year’s low of $3,850 during the March 13 market crash to hit highs of $19,497 seen yesterday.
The rally seen over the past few weeks has stemmed from BTC having little correlation to stocks, which are struggling amid the second wave of Covid-19 lockdowns.
John Kramer, a trader at crypto trading firm GSR, attributes the swift uptick to the ongoing quantitative easing by central banks, which have effectively weakened the dollar and highlighted Bitcoin’s finite supply.
More and more investors are now turning to the digital asset class as a hedge against inflation and a way to diversify their traditional portfolios.
Despite the intense sell-off seen today that has seen BTC prices plunge as low as $16,725, analysts are still bullish about the coin. Ki-Young Ju, the founder of blockchain analytics firm CryptoQuant, tweeted:
” Long-term on-chain indicators say the buying pressure prevails. I still think we can break 20k in a few days.”
BTC Exodus From OKEx Exchange
While large BTC investors move their holdings to exchanges to secure a better price once the coin sets a new price record, the very opposite is occurring on OKEx exchange.
The popular trading platform started processing cryptocurrency withdrawals earlier today after a five-week-long suspension.
While announcing the re-opening last week, OKEx, revealed they would offer affected users a compensation and rewards program to thank them for holding out during the disruption.
Despite their best efforts to prevent the exodus of digital assets from their reserves, Crypto Quant flagged a massive amount of Bitcoin leaving the OKEx exchange over the past few hours.
This colossal outflow of BTC clearly shows that many traders have apparently lost confidence in the exchange.