{"id":123941,"date":"2020-12-01T20:56:31","date_gmt":"2020-12-01T17:56:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/3-reasons-why-bitcoin-price-violently-rejected-near-20000\/"},"modified":"2020-12-01T20:56:31","modified_gmt":"2020-12-01T17:56:31","slug":"3-reasons-why-bitcoin-price-violently-rejected-near-20000","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-violently-rejected-near-20000\/","title":{"rendered":"# 3 reasons why Bitcoin price violently rejected near $20,000"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3df5db407f1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3df5db407f1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-violently-rejected-near-20000\/#What_led_whales_and_miners_to_sell_Bitcoin\" >What led whales and miners to sell Bitcoin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/3-reasons-why-bitcoin-price-violently-rejected-near-20000\/#Is_the_current_recovery_just_a_dead_cat_bounce\" >Is the current recovery just a dead cat bounce?<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># 3 reasons why Bitcoin price violently rejected near $20,000 <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>Bitcoin (BTC) finally managed to secure a new all-time high but the digital asset rejected strongly near $20,000. On-chain analysts say a sell-off from whales and miners, combined with the $20,000 level acting as a resistance level caused a fierce drop.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/531995f5-ecd7-466c-ab7a-fe66bc3b92f4.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 15-minute chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"What_led_whales_and_miners_to_sell_Bitcoin\"><\/span>What led whales and miners to sell Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>For whales and high-net-worth investors, liquidity is the most important factor. Since they deal with large orders, they need to calculate the slippage their sell orders would cause.<\/p>\n<p>Typically, the best period for whales to sell is when there is peak euphoria in the market met with large buyer demand. This allows whales to more efficiently sell their holdings without causing massive volatility.<\/p>\n<p>When the price of Bitcoin officially surpassed its all-time high on Coinbase, it caused the market sentiment to become highly bullish. Shortly thereafter, whales started to sell, causing large liquidations across major exchanges.<\/p>\n<p>CryptoQuant CEO Ki Young Ju explained that whale withdrawals were slowing down on Nov. 30. He said :<\/p>\n<blockquote><p>\u201cI called short-term bearish based on miner-selling, whale activeness on exchanges, and no whale withdrawals. But I knew enough exchange stablecoin reserves would break $20k by this year. If ATH rejection h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ens, it could be a huge pullback as whales would sell BTC heavily.\u201d<\/p><\/blockquote>\n<p>The confluence of whales keeping BTC on exchanges, which means higher selling pressure, and the sell-off from miners amplified BTC\u2019s downturn. <\/p>\n<p>Ki also noted that whales began to deposit Bitcoin into exchanges once again, which happens when whales want to sell their holdings. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Whales are depositing <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a> <br \/>+ Miners are selling <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$BTC<\/a><br \/>+ No exchange withdrawals from whales<br \/>+ $20K rejection<br \/>= Huge pullback ($19.9k -&gt; $18k) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/F1n7ypl4kT\">https:\/\/t.co\/F1n7ypl4kT<\/a> <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/t.co\/NnJJxzIcAV\">pic.twitter.com\/NnJJxzIcAV<\/a><\/p>\n<p>\u2014 Ki Young Ju \uc8fc\uae30\uc601 (@ki_young_ju) <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/ki_young_ju\/status\/1333768333343088641?ref_src=twsrc%5Etfw\">December 1, 2020<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Is_the_current_recovery_just_a_dead_cat_bounce\"><\/span>Is the current recovery just a dead cat bounce?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The price of BTC recovered swiftly after dropping to around $18,200, surging back above $19,400 within hours. <\/p>\n<p>The speedy recovery occurred likely due to the nature of the drop. As the price declined, exchanges saw cascading long liquidations. As such, BTC likely dropped harder than it should have if it weren\u2019t for the large liquidations.<\/p>\n<p>The recovery was equally intense to the upside for that reason. Late short-sellers could have gotten aggressive as BTC dropped, leading to a short-term short squeeze.<\/p>\n<p>In the near term, Bitcoin could see two major scenarios. First, it could consolidate above $19,000, which would allow the derivatives market to find composure and the open interest to rebuild.<\/p>\n<p>Second, BTC could continue to drop as traders anticipate a blow-off top after achieving an all-time high. <\/p>\n<p>But, the macro outlook on Bitcoin still remains highly optimistic. Scott Melker, a cryptocurrency trader, emphasized that the monthly candle for November closed at BTC\u2019s all-time high, which paints a positive long-term picture for BTC. He <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/scottmelker\/status\/1333585973360398336\">said<\/a>:<\/p>\n<blockquote><p>\u201cLast month closed right at the previous all time high monthly candle close. This month closed right at the all time high. Really impeccable chart.\u201d<\/p><\/blockquote>\n<p>In the near term, the key support levels for Bitcoin are $18,200, $17,700, and $16,200. There are still large whale clusters in these areas, which could cause a reaction from buyers.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/3-reasons-why-bitcoin-price-violently-rejected-near-20-000\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# 3 reasons why Bitcoin price violently rejected near $20,000 &#8221; Bitcoin (BTC) finally managed to secure a new all-time high but the digital asset rejected strongly near $20,000. On-chain analysts say a sell-off from whales and miners, combined with the $20,000 level acting as a resistance level caused a fierce drop. BTC\/USD 15-minute chart&#8230;.<\/p>\n","protected":false},"author":1,"featured_media":123942,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-12\/0e061a08-1c45-49b8-b893-883b2c82b768.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,74860,75150,73785],"class_list":["post-123941","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-cryptocurrency-exchange","tag-market-update","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/123941","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=123941"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/123941\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/123942"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=123941"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=123941"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=123941"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}