Bitcoin experienced a sharp drop on November 14, primarily caused by a surge in selling by influential investors known as "whales."These whales capitalized on Bitcoin's climb to $38,000 and cashed in on substantial profits.The decline in Bitcoin's value might also be attributed to the release of U.S. inflation data, which came in lower than analysts' expectations.According to Glassnode data, more than 15 wallets holding over 1,000 BTC sold off or redistributed their assets during the BTC price decline.Material Indicators highlighted a considerable volume of sell orders clustered around the $38,000 mark, creating a formidable resistance level for Bitcoin.

On November 14, Bitcoin took a steep nosedive, plummeting from $38,000 to approximately $35,000 within a few hours. Analysts attributed this sudden decline to a surge in selling pressure primarily from large holders known as whales. These whales, motivated by profit-taking opportunities as Bitcoin surged to $38,000, initiated substantial sell-offs.
Interestingly, the drop coincided with the release of the U.S. Inflation Data, which showed a rise in the Consumer Price Index (CPI) for October. However, the increase was slightly lower than anticipated by analysts, with a 0.9% month-on-month and 6.2% year-on-year rise, missing predictions by a small margin.
This inflation data was anticipated to positively impact Bitcoin, suggesting a potential reassessment of monetary stimulus by the Federal Reserve and a subsequent interest rate hike. Contrary to expectations, Bitcoin failed to maintain its momentum above $37,000 and swiftly declined to $34,800.
The sell-off trend intensified as more than 15 wallets holding over 1,000 BTC redistributed or sold their holdings during Bitcoin's rise from $35,000 to nearly $38,000 on November 3. Glassnode data also indicated an increase in BTC inflows to crypto exchanges, with approximately 34,000 BTC transferred within a month. Notably, the number of whale wallets reached a month-low following Bitcoin's surge to $38,000, indicating a potential mass dumping of holdings by whales.
Further reports from Material Indicators corroborated this trend, highlighting significant sell orders around the $38,000 mark, acting as a formidable resistance for Bitcoin. Aggressive selling ensued as Bitcoin approached this level, resulting in substantial whale-driven sell-offs.
The market volatility led to significant liquidations, with traders losing up to $120 million as they anticipated Bitcoin's ascent beyond $40,000 and possibly reaching $42,000 or $45,000.
While this information aims to provide insights into the recent Bitcoin price fluctuations, it's crucial to acknowledge the inherent volatility of cryptocurrencies and exercise caution when making financial decisions.
#BTC #bitcoin #glassnode #crypto2023 #cryptocurrency
$BTC