Konstantin Anissimov, Executive Director at CEX.IO, shares his insights about the Bitcoin (BTC) and Ethereum (ETH) weekly price movements.
Bitcoin Holders Realize Profits, Pushing Price Down 6.87%
Large Bitcoin holders seem to be realizing profits after this cryptocurrency rose to a new all-time high of $19,915.14 on December 1st. Since then, the number of addresses holding 10,000 to 100,000 BTC has dropped significantly.
Roughly two whales have left the network or redistributed their tokens, representing a 1.85% drop over a short period.
The sudden decline in the number of Bitcoin whales on the network may seem insignificant at first glance. Still, when considering these large investors hold between $19 million and $1.9 billion in BTC, the spike in sell orders can translate into billions of dollars.
Such a significant increase in downward pressure was clearly visible during the week of December 7th. Bitcoin kicked off the weekly trading session at a high of $19,367.60, and its price immediately started plummeting.
By December 9th, at 8:00 UTC, the pioneer cryptocurrency had taken an 8.96% nosedive to hit a low of $17,639.
The 200-four-hour moving average was able to contain falling prices at bay and served as a rebound zone. Bitcoin jumped and regained lost ground, rising to a high of $18,647.33 roughly twelve hours later. Nonetheless, sell orders continued to get triggered as BTC went up, which caused another downswing to $17,580, marking this the lowest price point of the week.
As the weekly trading session came to an end, the flagship cryptocurrency rose 2.64% to close Friday, December 11th, at $18,044.19. Investors incurred a weekly loss of 6.87% due to the downward price action.
Ethereum Generates Over 9% in Weekly Losses
The launch of the Beacon Chain appears to have served as a “sell the news” event for Ethereum holders. Although cryptocurrency enthusiasts continue staking their ETH exponentially, the network’s activity has been declining.
The number of new daily addresses created during the week of December 7th dropped to a low of 108,000, which is a negative sign.
The downward trend in network growth was quickly reflected in Ether’s price. The smart contracts giant kicked off Monday’s trading session at a high of $601.97, this being the highest price point seen over the rest of the week. From that point on, Ethereum entered a downward trend that saw its price plunge by 11.90%.
By December 9th, at 8:00 UTC, ETH had reached a low of $530.32. Some market participants seem to have taken advantage of the downward price action to get back into the market, consequently increasing the buying pressure behind this cryptocurrency. The spike in buy orders was followed by a 9.12% price increase that took Ether to $578.67.
Regardless of the significant rebound, investors continued selling their holdings. As a result, Ethereum dropped back below the $550 support level and closed Friday, December 11th, at a low of $544.51.
Ethereum holders saw their investments take a 9.55% hit during the week of December 7th.
Uncertainty Reigns in the Cryptocurrency Market
While institutional investors have made it clear that they intend to continue adding cryptocurrencies to their balance sheets, the near-term future for Bitcoin and Ethereum remains uncertain.
Both of these cryptocurrencies have flashed sell signals on their monthly charts, according to the Tom Demark (TD) Sequential indicator. Meanwhile, the Crypto Fear and Greed Index is hovering at a record high, sensing “extreme greed” among market participants. These bearish signs are too significant to omit regardless of the high volatility and excitement that the cryptocurrency market is going through.
If the selling pressure seen during the week of December 7th intensifies, Bitcoin might be poised to lose $18,000 as support and aim for $16,000 or $14,000. Ethereum, on the other hand, will have to break below the $530 hurdle to drop towards $400 or even $360.
Executive Director at CEX.IO. His area of responsibility includes customer relationships with institutional and VIP-clients, overseeing the creation of the company’s development strategy, new products, markets and partnerships. As a member of the board of directors, Konstantin is also responsible for corporate governance.