OKEx Analyst Warns Whales Could Dump BTC Above $19,000

An OKEx analyst warns that Bitcoin whales could dump BTC above the $19,000 level and that the bulls will have to brace for impact from traders that hold bigger quantities of the crypto tokens so let’s read more in the latest Bitcoin news.

Robbie Liu, a popular OKEx analyst warns that the whales could dump bigger quantities of BTC if the benchmark cryptocurrency reaches the $19,000 price range. According to him, the so-called “whales” could take advantage to dump BTC and noted that the area became very hard to break and he thinks that next sessions will see “a battle between the whales and the retail traders” as BTC will reach $20,000.

The statements came as a part of the broader analysis that studied BTC futures’ metric against the crypto rally above $19,000 in the spot market on Tuesday. Liu highlighted that the retail traders faced extreme losses after chasing the price gains as well as the losses. For example, the long/short ratio on the exchange dropped from 1.08 to as low as 0.78 between last weekend and Monday. This was the same time when the BTC/USD exchange rate rallied higher which showed that the retail traders are awaiting a bearish correction in the spot market but then on Tuesday, BTC established an all-time high. With the short-positions liquidated, the retail traders changed their strategy to bullish and now anticipate that BTC/USD will hit $20,000 which is a key psychological level.

The pair then failed to hit the intended long target and reversed the direction. This put traders on the wrong side of the trade. “The $1800 pullback could have caused the traders to be caught out of position” as Liu noted. The analyst also added that the retail traders that don’t have a clue about the next BTC price direction so the high selling activity between the $19,000 and $20,000 range limits the long exposure while the assertive buying sentiment at $18,000 can reduce their short opportunities.

The retail traders’ sentiment allowed the whales to take the lead and according to the data fetched by analytics platform CryptoQuant, the larger traders will dump BTC as its price eyes a strong rally to the $20,000 in the short-term. Ki-Young Ju, the CEO of CryptoQuant tweeted that the BTC inflow across all exchanges will go upward and can point to an increase in whales’ deposits as Ju noted:

 “If you look at all exchanges inflow mean(144-block MA), it hit over 2 BTC a few hours ago. We hit 2.5 BTC when the price was tapping $20k. It was the eight-month high since the March great sell-off.”