While a majority of market observers predict bullish positions in the future, there are some personalities who speculate bearish levels as a result of massive cash out.
A prominent BTC whale with the Twitter name “Joe007” outlines various reasons behind the expected bearish situation. He is a well-known whale who has possession of a large portion of BTC over centralized cryptocurrency exchange Bitfinex.
According to him, several investors holding Bitcoin for a long period of time may sell their holdings over exchanges in order to collect a big profit. The selling of the top digital asset on the part of long term holders may show a “sudden balance shift that precipitates a parabolic curve blow-off.”
“Once BTC price is high enough, holders are going to cash out en masse, leading to a sudden balance shift that precipitates a parabolic curve blow-off. It’s all about timing.”
Long Term Holders May Sell BTC Holdings
Based on the data of on-chain providers, some long term investors are cashing out BTC holdings as the price value has reached new highs.
He further explained that if crypto-inspired individuals are not willing to take risks of buying flagship currency at high rates then institutions will not remain at forefronts in purchasing BTC.” If YOU aren’t ready to buy at ATH, why would you expect institutions to do it? Come on, show some conviction, lead by example. Maybe others will follow,” he tweeted.
He further elaborated that if a meltdown on the macro level happens, the crypto markets will suffer as a result. In March when the US equity markets went down, the leading cryptocurrency also shredded its half of value.
The altcoins will automatically go down if anything happens with Bitcoin, and a downfall in altcoins’ markets is expected. “In the next bear phase I expect alts to lose a bigger share of their capitalization yet,” he stated.
Over the recent few weeks, Bitcoin stick in the trading region between $19,000 and $20,000. After a rejection of over $19,500, the price went down as a result of massive selling over trading platforms. After remaining in the low region, the value once again topped above $19,500, which is also the highest position of the last two weeks.
To move forward, the price value of Bitcoin is required to break the resistance level standing at $20,000. At press time, it is standing at $19,900 after an increase of 3.29% over the day.