Market Analysis

Bitcoin price reclaims $15.5K after whales sell the most BTC since March

The price of Bitcoin (BTC) has reclaimed $15,500 on Nov. 11 after whales sold the highest amount of BTC since March. In past cycles, the dominant cryptocurrency typically rallied after a sell-off from whales.

On March 12, for instance, the All Exchanges Inflow Mean (MA7) indicator hit 3. At the time, BTC declined to as low as $3,596 on BitMEX after seeing cascading liquidations.

Since then, the MA7 has never increased above 1.7. On Nov. 11, for the first time since March, the MA7 neared 2. This indicates that whales sold a significant amount of BTC in the past few days.

All Exchanges Inflow Mean. Source: CryptoQuant

Why does big Bitcoin sell-off indicate a bull trend?

Bitcoin whales, or high-net-worth individuals who hold large amounts of BTC, do not necessarily short BTC because they are bearish.

Many whales prefer to take profits amid a bull run and build up positions along the way. This is because whales trade substantially larger positions than most retail traders. As such, they seek liquidity and high buyer demand to sell or adjust their positions.

Bitcoin tends to rally after a whale-induced sell-off because it decreases selling pressure on the cryptocurrency in the short to medium term.