Strong whale sell-off: Bitcoin price back above US$15,500

Bitcoin whales have sold more BTCs than they have sold since March. This is a good sign for the BTC course.

The Bitcoin (BTC) price was able to climb back above $15,500 on 11 November after whales sold the highest amount to BTC since March. In previous cycles, the leading crypto currency has recovered after selling off whales.

On 12 March, for example, the MA7 indicator reached the 3rd level, when BTC on BitMEX fell to as low as $3,596 after cascading liquidations.

Since then, the MA7 has never risen above 1.7. On 11 November, the MA7 approached 2 for the first time since March, suggesting that whales have sold a significant amount to BTC in recent days.

MA 7 indicator Source: CryptoQuant
Why does the large sell-off indicate a bull trend?
Bitcoin whales that own large quantities of BTC do not necessarily sell BTC because they are pessimistic.

Many whales prefer to secure profits in the middle of a bull run and then build up new positions again. The reason for this is that whales trade with much larger positions than most retailers. They therefore use liquidity and high buyer demand to sell or adjust their positions.

Bitcoin tends to recover after a sell-off caused by whales, as this reduces selling pressure on the crypto currency in the short to medium term.


Although the Bitcoin market has become more balanced among retailers, institutions and whales, wealthy individuals still influence the market.


Ki Young Ju, CEO of CryptoQuant, stressed that in the past, Bitcoin has always rallied when whales have deposited BTCs on stock exchanges. He wrote:


„This is the indicator that signals that you should buy the decline. Buy BTC when sacrificial whales pay in on stock markets after the decline“.

Bitcoin has experienced extreme volatility over the past week, possibly as a result of whale sales. However, any major decline was aggressively bought up by other whales and small investors.


Large declines in Bitcoin have been bought up since early November. Source:

On 8 November, 10 November and 11 November, BTC recorded large declines. Bitcoin recovered significantly from each decline and returned to its previous support level within a few hours.


On chain data also very positive

Apart from the favourable technical structure of Bitcoin, the on-chain fundamental data also point to a general upward trend.


According to data from Glassnode, the number of active Bitcoin addresses reached a multi-year high. Elias Simos, Protocol Operations Manager of Bison Trails, commented


„Did you know that the number of active BTC addresses reached a multi-year high this week and is now at its highest level since January 2018? In the entire history of the Chain, it is only about 1.5 months since active addresses reached >1 million. What do you say to that?“

Daily active addresses are an important on-chain indicator for Bitcoin, as they could indicate two major trends


Number of active Bitcoin addresses. Source: Glassnode

First, retail investors may increasingly accumulate BTCs and transfer them into personal wallets. This suggests that they may want to hold the Bitcoins for a longer period of time.


Secondly, there may be an increase in over-the-counter transactions, particularly with whales and high net worth individuals.


The combination of these positive technical and fundamental trends increases the likelihood of a prolonged rally before the end of the year. As it is only six months since the halving, the chances of a more sustained upward trend are high.