Capital-One

The crypto news today show that an unknown investor known as a whale sold more than $10 million worth of Bitcoin (BTC) at the price of $7,125 on BitMEX which is the largest cryptocurrency margin trading platform.

The BTC price is however holding firm at above $7,100 and suggests that the market absorbed the 8-figure dump relatively quickly. There was not a big market reaction to the fact that a whale just sold $10 million in BTC – in fact, there was a lack of reaction from BTC and other altcoins and the momentum remains strong following the quick short-term reversal.

BitMEX $BTC Whale:
$10,000,000 worth of #Bitcoin sold at $7,125.32 09:21:59 2019/12/20
| 💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰💰 So scared right now

— WhaleTrades 🐳 (@WhaleTrades) December 20, 2019

Rather than dropping, the prices of cryptocurrencies today are actually rising as we can see from the positive Bitcoin news now. The momentum of BTC is kept and while the price was around $6,500 days ago, it is now over $7,100 with signals that it may be choosing higher grounds very soon.

A major mining pool known as F2Pool revealed that with the exception of five most newly released mining chips in Antminer, DragonMint, INNOSILICON and Ebit, all others were either below or near the breakeven point of mining.

When the Bitcoin price falls below the breakeven point of mining, it becomes very difficult for small miners to maintain their operations, often resulting in a capitulation at the lowest point of a bear market.

The short-term trend reversal of BTC triggered by a short squeeze across major margin trading platforms alleviated significant pressure from the crypto market itself. Now that a whale just sold $10 million, this may be the reason for a downward run in the near future.

However, the market has been able to absorb such a large sell order until now, without any noticeable pullback below $7,100. In November this year, one small miner reportedly dumped over $17 million worth of BTC on the exchange market – and at the time the price of the dominant coin was struggling to remain above $8,000. Following the drop, the Bitcoin price went on to drop by almost 20% and caused the market to weaken.

Meanwhile, we can see that BTC successfully defended a critical support level at $6,400 and came close to breaching it at $6,410.