Bitcoin (BTC) eventually hit a record high, but the digital asset fell by nearly $20,000. Analysts at the chain said that the massive sell-off of whales and miners combined with the $20,000 resistance caused a sharp drop.

What motivates whales and miners to sell Bitcoin?
For whales and wealthy investors, liquidity is the most important factor. When they deal with large orders, they need to be aware of the decline caused by their sell orders.

Usually, the best time to sell whales is when the euphoria in the market reaches its peak, which coincides with the huge demand of buyers. This allows the whale to sell its property more efficiently without causing huge turmoil.

When the price of Bitcoin officially exceeded Coinbase’s all-time high, market sentiment became very optimistic. Shortly thereafter, the whales began to sell, leading to major playoffs on major stock exchanges.

CryptoQuant CEO Ki Young Ju said that on November 30, the evacuation rate of whales slowed down. He said:

“I mentioned the short-term decline based on the sale of miners, whale activity on the exchange and cetaceans without retreat. But I know that the stable reserve of the exchange will exceed $20,000 this year. If ATH falls, it may be a big deal Loss. Whales dumped BTC in large quantities, leading to an economic downturn.”
The whales holding BTC converge on the exchange, which means that miners’ sales pressure and increased sales have exacerbated the decline of Bitcoin.

Ki also stated that the whale once again deposited bitcoin on the exchange, which happened when the whale wanted to sell its stock.

Is the current recovery just a jump?
BTC rebounded quickly after falling to around US$18,200, and recovered to above US$19,400 within a few hours.

Due to the nature of the economic downturn, a rapid recovery may have occurred. As prices fell, the exchange conducted long-term liquidation. Therefore, the decline in BTC may be greater than the decline in the absence of major liquidation.

For this reason, the recovery is also pointed upwards strongly. When Bitcoin crashes, the late short sellers may become violent, adding short-term pressure.

In the near future, Bitcoin may see two main scenarios. First, it can hold more than US$19,000, which will allow the derivatives market to find a cool point and have an open interest in reconstruction.

Secondly, BTC may continue to fall because traders expect the highs to burst after hitting all-time highs.

However, the overall outlook for Bitcoin remains very optimistic. Cryptocurrency trader Scott Melker confirmed that the monthly candlestick in November closed at the historical high of BTC, creating a positive long-term outlook for BTC. He said:

“Last month was completely closed at the previous high of the candlestick closing price. This month closed at all all-time highs. The chart is perfect.”
In the short term, Bitcoin’s main support levels are $18,200, $17,700, and $16,200. There are still a large number of whales in these areas that may cause buyer reactions.