Bitcoin continues to break below key supports. In the last 24 hours, the digital asset has dropped by 2%. On Thursday, Bitcoin looked ready to get back up as it climbed to $8,900 in a few hours. This was however short-lived. The rally was rejected at this position killing chances that the upward trajectory extended above $9K. With Bitcoin now back to the $8,600 support again, there is a risk that whale movement could trigger a plunge.
Whale Movement A Key Indicator
The bull’s attempt to break above proved futile. This could have seen a number of investors lose faith with a short term rally and cash in. Already, some Whale movement suggests that they are ready to sell. This historically leads to a dump and price fall.
?? 2,002 #BTC (17,385,326 USD) transferred from unknown wallet to #Binance
— Whale Alert (@whale_alert) February 28, 2020
This is a bearish sign as such huge amounts could lead to a price plummet over the next couple of days with supply surpassing demand.
600 #BTC (5,175,090 USD) transferred from unknown wallet to #Binance
— Whale Alert (@whale_alert) February 28, 2020
The situation has as well been worsened by attacks on two prominent exchanges. As we reported in a span of hours, Bitfinex and OKex have experienced DDoS attacks. This is yet another worrying sign with the market historically taking such developments negatively.
593 #BTC (5,149,625 USD) transferred from #OKEx to unknown wallet
— Whale Alert (@whale_alert) February 28, 2020
While one way is to take away the assets and storing them in personal wallets, some chose to sell, sometimes triggering sell-offs.
The $8,500 support has shown strength and bulls are unlikely to give it up. But the recent developments are set to give the position a real test. If the bulls are not able to fight the bears and bounce up, this support will be breached and we see a retest of the $8,200 supports.
Gearing Up Again
On the higher side, the bulls will be aiming to climb above $9,000 before restoring some stability. Further up, they will aim to hit $9,500.
https://twitter.com/pulte/status/1233399017037541376
Despite a shaky couple of days and lack of a rally at a time when the global economy and stock market are struggling, some investors remain bullish. Whether as a safe haven or risk asset, many expected that Bitcoin will be rallying as the Coronavirus spread and strangled world economies. This has not been the case, but we wait.
