Bitcoin Whale Sells $9.7 Million Worth of XBT Contracts On BitMEX


This morning, a Bitcoin whale sold $9,708,970 worth of XBT contracts on the BitMEX exchange. In the early hours of Oct 11, the BTC was sold at a price of $8,413.

This transaction notified @whaletrades which sent out the following tweet:

While assessing and identifying market trends is no straightforward task, following the money in the way of large transactions can be a very useful indicator.

A transaction of this magnitude by a major player followed by a sell may very well be a precursor to a significant dump in the price of Bitcoin.

Therefore, keeping track of such transactions by accounts such as @whaletrades can be very helpful in determining the direction of future price movement and predicting rapid increases or decreases.

Unsurprisingly, what followed shortly after was a rapid price decrease of about 5% inside one hour.

Bitcoin Price

The first yellow arrow indicates the price at which the whale transaction occurred, while the second one identifies the dump. Additionally, this has been the biggest hourly candle measured by magnitude in the month of October.

The bearish candle and the swiftness of a decrease could be a sign of further price decreases.

If so, we could expect similar whale price movements to occur before then.

Furthermore, this movement was seen throughout the cryptocurrency market, with several altcoins experiencing similar decreases.

However, this could also be a small retracement in response to the rally earlier this week.

Whichever may be the case, this is definitely a sign of weakness, and most likely indicates that we may be nearing a short-term top.

Do you think the whale transaction and the following dump were correlated? Let us know in the comments below.


Images courtesy of Twitter, Tradingview.

Disclaimer: This article is not trading advice and should not be construed as such. Always consult a trained financial professional before investing in cryptocurrencies, as the market is particularly volatile. 

 





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