Analysts at CryptoQuant have warned that the selling pressure from Bitcoin whales could lead to a further decline in Bitcoin's price. The data indicates a significant increase in whale deposits on exchanges, suggesting intentions to sell. Additionally, high stablecoin reserves at major exchanges hint at a shift away from Bitcoin and altcoins into dollar-pegged assets.

Key Takeaways

Increased Bitcoin deposits from whales signal potential sales and market pressure.
CryptoQuant reports that 45% of total Bitcoin sent to exchanges comes from large deposits of 100 BTC or more.
Binance's stablecoin reserves have hit a record $51 billion, indicating a market rotation away from Bitcoin.
Analysts suggest that the market might see a price drop into the $70k-$80k range, while others note targets of $92,000 and $101,000 for Bitcoin's resistance.
Overall, Ether and altcoins are experiencing similar deposit inflow trends, contributing to heightened market uncertainty.

Bitcoin risks deeper drop if whale exchange deposits stay high: Analyst

Selling Pressure from Bitcoin Whales

According to analysts at CryptoQuant, a significant selling pressure from Bitcoin whales may lead to a further drop in the asset's price. In general, when inflows to crypto exchanges increase, it often indicates that investors are preparing to sell. Conversely, a rise in outflows usually suggests accumulation or holding.

Data from CryptoQuant reveals that a substantial 45% of all Bitcoin transferred to exchanges has come from large deposits, specifically those of 100 BTC or more. Some days have seen these deposits reach as high as 7,000 BTC. This signals that whales are likely offloading coins in anticipation of selling.

As a result, the average deposit value for Bitcoin has climbed to 1.23 BTC in November, marking the highest level seen in a year.

Exchanges have been seeing large BTC deposits recently. Source: CryptoQuant

Binance Stablecoin Reserves Reach All-Time High

In addition, CryptoQuant reported on Wednesday that Binance’s stablecoin reserves have reached an all-time high of $51 billion. This surge is indicative of a rotation from Bitcoin and alternative cryptocurrencies into dollar-pegged assets. Such capital often remains in stablecoins until investors feel ready to re-enter the market.

Earlier this week, analyst James Check pointed out that there is still leverage in the market that hasn't yet been cleared. He mentioned, "We wouldn’t be too surprised if we wick into the $70k-$80k zone to flush the final leverage pockets."

Meanwhile, Tom Lee, chairman of BitMine, has revised his earlier $250,000 Bitcoin price forecast, noting that even reaching an all-time high by the year's end is now only a "maybe."

Similar Trends Observed in Ether and Altcoins

CryptoQuant also noted a comparable trend in deposit inflows for Ether, although the total increase has not been as pronounced. This month has seen a rise in deposits for other altcoins on exchanges as well, as the market sell-off continued, pushing several altcoins back to bear market lows.

Earlier this week, 10x Research mentioned that Bitcoin's current "tactical, oversold rebound is still playing out," with $92,000 and $101,000 identified as critical resistance levels to watch.

Currently, Bitcoin has reclaimed the $90,000 mark and is trading slightly above it as of the time of this writing.

This article highlights the current dynamics in the Bitcoin market, with increased selling pressure from whales and shifting reserve patterns at major exchanges. Keep an eye on these developments as they could signal important trends in the cryptocurrency ecosystem.