A Bitcoin (BTC) whale placed a $100 1000000 brusk on Bybit, according to the pseudonyms trader CL. Information technology comes later on various on-chain data points toward a whale-driven sell-off throughout the past week.

Though the momentum of Bitcoin remains strong, there are many reasons that make $xvi,000 an attractive expanse for sellers.

There is meaning liquidity at $16,000, primarily because it is a heavy resistance level. But the level has seen relatively high buyer demand, stablecoin inflows show. Hence, the battle between buyers and sellers at $16K makes it an area with high liquidity, which is compelling for sellers.

Bitcoin orderbook on futures exchanges. Source: CL, Exocharts

Increasing signs of whales taking profits

A seller aggressively sold Bitcoin on Bybit on November. 15. Order flows prove that there were sell orders worth around $three.5 million on average consecutively over several hours.

Based on the abrupt large-calibration sell order, CL suggested that this may result in 2 scenarios.

Showtime, the seller could get engulfed and crusade a clasp, which might cause the BTC price to increase. 2d, it could continue to apply selling pressure on BTC. The trader wrote:

"Approx 2 hours ago, someone aggressive sold almost ~100M on Bybit, a third of the sells are opens, personally pretty curious to see what happens if this seller/shorter does become engulfed, or if he is let free."

Meanwhile, other major exchanges have spotted large deposits over the last 24 hours. United States-based cryptocurrency exchange Gemini saw a 9,000 BTC deposit, according to the information from CryptoQuant.

Gemini BTC inflow mean. Source: CryptoQuant

Whales typically employ exchanges with strict compliance and stiff regulatory measures, which include platforms similar Coinbase and Gemini.

Because the big Bitcoin eolith into Gemini, which is worth $143 million, a pseudonymous researcher known as "Blackbeard" said it is time to exist cautious.

But weekend volatility?

Equally CL noted, Bitcoin'due south current market place structure is different from the previous bike. For instance, when BTC was at $xvi,000 in 2017, the market was extremely overheated with extreme volatility. The trader said:

"Back in 2017, when we pumped from 10k, 15, into 20k, we had OKEx weekly futures trade in grand$ contangos, now we're hither with quarterlies only 100$ in a higher place."

This time around, the rally appears to exist more than sustainable and gradual. Bitcoin has continued to run across a staircase-like rally over the past half dozen months, which has allowed it to evolve into a prolonged uptrend.

Rather than a sudden spike followed by another steep uptrend, BTC has seen upside followed by consolidation, and so on.

As Cointelegraph reported earlier this month, various information, including Google Trends, show at that place is still petty interest from retail investors unlike in late 2017. On the other hand, in that location is increasing evidence that Wall Street is starting to take notice.

Hence, in that location is a strong argument to be made that the ongoing rally is fundamentally unlike from 2017 despite the electric current "extreme greed" market sentiment. Notably, the available supply has decreased due to the recent halving, equally well equally dwindling reserves on exchanges over the past twelvemonth.

The Bitcoin futures funding rates are also neutral at around 0.01%, which means the market place is not as overheated or overcrowded equally information technology was three years ago. This trend could make the downside limited, especially in the medium term.