Bitcoin price first dipped a toe under the $9,000 mark, then went on to erase profit positions gained since the dramatic rally at the end of October. The slide took BTC to $8,780.84 as of 15:25 GMT on Friday, with plenty of leeways to drop as the weekend hovered with lower volumes. Here are five reasons why this happened.
Bitcoin Whales Calling Quits
Crypto exchanges saw outflows in the past days, with no new serious tranches of either BTC or Tether (USDT). The recent dump, based on order books, seems to be a capitulation and a selling pressure, to realize partial profits from the recent bitcoin price rally. Previously, whale watching bots noted a series of large-scale transactions of coins to exchanges, lying in wait for potential selling.
— Gabor Gurbacs (@gaborgurbacs) November 8, 2019
Order books reveal a pattern of selling pressures coming in from large-scale BTC traders. At this point, the selling momentum may see its tide turned at any moment, but for the time being, Bitcoin price seems solidly pressured at least to the $8,800 level.
On-Chain Metrics Point to Sluggish BTC Usage
Bitcoin transactions became almost languid in the past week, as price stagnated. Low activity suggests that most coins lay dormant, and there was no possibility for explosive price action. On-chain Bitcoin transactions and their value can indicate preparation for serious trading volumes. This week’s on-chain BTC metrics indicate that the benchmark crypto wasn’t in a mood to galvanize.
1/ This week’s #onchain market observations:
Core #Bitcoin on-chain metrics are at monthly lows (adjusted transaction volume,