Bitcoin prices could correct below the psychological $50,000 mark as early as this weekend, threatening to add further downward pressure to September, which Capital historically been a bearish month.
Bitcoin (BTC) price could face further downward pressure this weekend as whales (entities holding large amounts of BTC) look to take profits.
A smart whale address sold 100 BTC, worth over $5.3 million, to make over $206,000 in profit.
Following that, a total of 402,000 BTC worth over $21 billion was purchased by addresses likely looking to sell at Capital, according to Lookonchain’s September 7 post:
836,000 addresses bought ~402,800 BTC ($21 billion) at prices ranging from $51,113 to $54,303. These addresses likely sold near break Capital.
Whales can have a significant impact on cryptocurrency price action due to the large amount of Capital that impacts the market. Traders often watch whale selling patterns for signals about the short-term price trajectory of cryptocurrencies.
Arthur Hayes: Bitcoin Could Correct Below $50,000
Bitcoin could see a correction below the psychologically important $50,000 mark as early as this weekend, Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, warned.
Hayes wrote in a September 6 post :
I'm aiming for sub $50k this weekend. I'm Short aggressively. Pray for my soul, I'm a degenerate.
Meanwhile, Bitcoin price has lost the important support level of $55,000, trading at $54,689 at the time of writing. The world's first cryptocurrency is down nearly 8% on its weekly chart.
Bitfinex analysts have warned of a possible correction below $50,000 before the real rally takes place. The analysts said:
This is not an arbitrary number, but is based on the fact that cycle peaks in terms of profit margins decline by about 60%–70% in each cycle, and the Medium correction of a bull market declines as well.”
Adding to investors’ concerns about greater selling pressure, Galaxy Digital also deposited $78.5 million in BTC into Coinbase Prime on September 7, Lookonchain noted .
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