Forex and Crypto News

It’s time for profit-taking

20:03 01 December /2020

On December 1, Bitcoin investors could celebrate a new event. Bitcoin price has reached a new high of $19918. Thus, the price exceeded yesterday's maximum, which was held for 3 years. However, Bitcoin's price is still below $20000. At the time of publication, the price of Bitcoin has dropped below $19000 and is at $18900.

Undoubtedly, institutionalists and whales view Bitcoin from a long-term perspective. And over the long term, Bitcoin remains bullish. Speculative investors need to know Bitcoin's short-term outlook. And there are several reasons why Bitcoin is risky in the short term.

Bitcoin inflows to exchanges

btc-flows.jpgSource: CryptoQuant

As the graph shows, Bitcoin whales continue to inflow their Bitcoins into exchanges. This is done to take profits at a higher price. This means that soon the whales will start selling Bitcoins to get dollars. This will put pressure on the Bitcoin price.

Other statistics show that as the price of Bitcoin rises, the trading volume increases. This figure shows that 100% of the supply is in profit, which is obvious given that the new ATH was broken yesterday.

hourly-unspent.jpg
  Source: Whalemap

However, another graph shows that the number of Bitcoins is increasing on exchanges. This means that whales are in no hurry to sell it, and Bitcoins remain on the exchange. They can start selling Bitcoins at any time.

Moreover, the graph of the unspent Bitcoin shows that Bitcoin accumulation began from the beginning of November.

If the whales plan to hold Bitcoins for a long time, they withdraw them from the exchange to cold wallets. For example, whales have been holding Bitcoins for a long time from 2018 to June 2019.

Based on this, now is the best time to take a profit. Buying Bitcoin is risky at the moment. A new historical highs, it is worth taking profits.

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