- Whale alert reported heavy Bitcoin whale traffic on Sunday.
- Bitcoin price dipped after the reported Bitcoin Whale traffic.
- Whale traffic and Bitcoin prices are correlated as an open secret.
On Monday the 2nd of November, the king of cryptocurrency saw a quick drop in the price from the $13700 range to the $13500 range, and that eventually converted into a further low to $13200 range. Where different perspectives have brought different opinions to explain the drop the two most important factors remain to be the United States elections and the Bitcoin Whale traffic.
Heavy Bitcoin whale traffic observed
Whale alert, the monitoring service keeping an eye on almost all major cryptocurrencies reported heavy whale traffic on Sunday and the early hours of Monday. These transactions were selling transactions that would have a negative impact on the traders since an influx of over 4000 BTC in the market means that a selling trend is brewing. The selling trend is associated with bearish momentum and thus creating a drop in the market.
A total of 8 transactions were recorded on the 1st of November, where the same amount, i.e., 1000 BTC, was transferred from Unknown wallet to Coinbase and other exchanges. This usually happens when a single whale is trying to dump their stash into the market and cash out after a long period of hodling.
Some buying transactions were observed on the same day, but given that the buying was worth only over 3000 and the selling stash unloaded in the market was 8000 BTC, the negative impact had soon hit the market resulting in an eventual price drop.
On the other hand, the U.S elections due today are also keeping the daily trading volumes low, and most traders originating out of the US are hodling their assets in the hopes that the king of cryptocurrency is going to hit a new high right after the election.