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Here's Why Bitcoin Won't Drop Below $20,000, According to CryptoQuant CEO

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Mon, 05/16/2022 - 10:58
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Arman Shirinyan
Bitcoin's drop below $20,000 may cause a catastrophe on the market, but with this whale's buying power, we may not see BTC dropping to it at all
Here's Why Bitcoin Won't Drop Below $20,000, According to CryptoQuant CEO
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The CEO of CryptoQuant offered a solution to a question concerning the cryptocurrency market: will Bitcoin break below the $20,000 range or not? According to the analyst, there is a major reason why it will not unless certain groups of traders want it to drop further.

The analyst's foundation is the Finex whale, who owns at least $1.17 billion worth of BTC in open long positions. The whale has created massive support for the first cryptocurrency, which requires tremendous selling pressure to be broke, which simply will not appear without a certain group pushing the price of the cryptocurrency down.

The only group that can provide more than $1 billion in pure liquidity is Wall Street-tier financial institutions that might be interested in purchasing the digital gold at a significant discount.

While the market previously had a large potential seller represented by the Luna Foundation Guard, which owned billions worth of BTC, the market has no sellers that might push the price of the cryptocurrency down so badly.

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Previously, the LFG reported a sale of more than $2 billion worth of Bitcoin on the market. Such a large deal was most likely done via market makers and/or OTC trading desks since it would require a liquidity that no exchange can offer upon request.

With no major selling pressure remaining on the market and most large sellers gone, Bitcoin and other cryptocurrencies should enter an accumulation phase after the massive distribution we saw in November.

At press time, BTC trades at $29,909 and is barely holding around the $30,000 support.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.