Bitcoin Price Plummets – What Triggered the Decline?
On Monday, the Bitcoin price dropped as low as $36,200, causing a stir in the crypto community. This was a drastic turn after a period of recovery in the market. While the price has begun to increase once again, many are left wondering what caused the steep plunge to $36,200.
Profit-Taking By BTC Whales Triggers Decline
The significant drop in price can be attributed to profit-taking by Bitcoin whales. Given the substantial rise in the Bitcoin price from $27,000 to $37,000 in the last couple of weeks, it was expected that profit-taking would follow. The investor cohort leading the profit-taking, however, explains why the decline was so significant.
According to a chart posted on X (formerly Twitter) by crypto analyst Ali Martinez, the major profit-taking was being done by large investors, also known as Bitcoin whales. These whales have been taking profits and over the last week, they have moved or sold roughly 60,000 BTC, worth over $2.2 billion at current prices.
These investors are part of the 100-10,000 BTC, meaning addresses holding at least 100 BTC and 10,000 BTC. Last week, these addresses held around 8.61 million BTC, but by November 13, the holdings had dropped to 8.55 million. This massive profit-taking activity by the whales has had a significant impact on the Bitcoin price.
Bitcoin Price Needs To Hold $36,400
Crypto analyst Ali Martinez revealed that the Bitcoin price had finally found support at $36,400 after it recovered. However, the bulls are not entirely out of the woods as they need to maintain the $36,400 support to avoid falling lower.
Martinez posits that if the price were to break below $36,400, then the next significant level for demand rests at $34,300. This would mean an about 5% plunge from the current levels. But it doesn’t end there as a further plunge could take the price back to $30,200.
For now, Bitcoin is holding steady above $36,600, with an increase in volume, suggesting that investors are taking advantage of the dip to load their bags. If the excitement surrounding a possible Spot BTC ETF sustains, then the price could resume its uptrend above $37,000 soon.
As Bitcoin continues to experience volatility, many are closely watching to see how the market will react in the coming days. With major players like Bitcoin whales influencing the market, the trajectory of the price remains uncertain. Investors and enthusiasts alike are hoping for stability and a return to the upward trend in the market.
