Bitcoin and Ethereum Holders Rush To Book Profits Before Catastrophic Price Crash
By Ekta Mourya
- $1.68 million worth of Bitcoin flows into exchanges, the most significant inflow since June 2019.
- Analysts admit to taking profits in Bitcoin and Ethereum on crypto Twitter; traders have a cautious outlook on the assets.
- Bitcoin experiences pullback ahead of $1.8 billion BTC options expiry.
Overall exchange activity of Bitcoin and Ethereum surges, analysts expect higher volatility in the two assets over the weekend.
Traders ramp up profit-taking in Bitcoin and Ethereum, ahead of $1.8 billion BTC options expiry
Analysts have noted massive volatility in Bitcoin and Ethereum prices in the past 24 hours. There is a notable spike in Bitcoin exchange inflow, nearly 3700 Bitcoins hit exchanges, and net exchange flow is positive. The influx is the largest since June 2019, and analysts had anticipated a spike in volatility in response to increased Bitcoin reserves on exchanges.
This implies that traders have transferred Bitcoin to exchange wallets for profit-taking, ahead of the expiry of $1.8 billion BTC options.
Bitcoin in whale wallets or addresses holding 100 to 10,000 Bitcoins is back in circulation as it hits exchanges and smaller wallets are accumulating. This may emerge as an unfavorable situation that leans towards an overall bearish outlook, based on Delphi Digital’s latest report titled “Tether Grows, Whales Dump, and ETH Hash Rate at ATHs.”
An altcoin analyst behind the Twitter handle @AltcoinSherpa has admitted to profit-taking in Ethereum and stated that he would resume buying in December.
In the case of Bitcoin, traders are anticipating a pullback. Bitcoin options are expiring on the Deribit exchange on the last Friday of the month. $1.8 worth of calls are placed to short or sell Bitcoin at $50,000.
If Bitcoin continues trading above $50,000, these traders will suffer losses when their positions are closed.
FXStreet analysts have predicted that Bitcoin is likely to form a bull trap, lure traders into long positions ahead of the crash to $40,000.