Lone Bitcoin Bitfinex Whale Wants More Blood, Buyers Beware?

Reynaldo Marquez

1 year ago

3 mins read

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Bitcoin remains range-bound moving around $58,5000 and $60,500 as the general sentiment in the market flips bearish. The benchmark crypto trades at $60,327 with sideways movement in the daily chart.

Related Reading | Bitcoin Turns Red, Why Bears Aim A Retest of $55K

Only two weeks ago, Bitcoin was blasting through resistance levels in the high around its current levels briefly topping at $69,200. This led to an increase in over-leveraged positions and an increase in funding rates across the BTC derivatives sector that left the market vulnerable to a liquidation cascade.

This event led to this week’s crash and seemed to be mainly driven by two crypto exchanges platforms. BitFinex, popularly known as a place where BTC whale conducts their operations, and Binance apparently processed a lot of selling orders.

Thus, pushing the price of Bitcoin below $60,000 and into the lows of its range. Binance’s selling pressure might have already cool-off, but a single BitFinex operator persists in their relentless pursuit of further downside price action.

Pseudonym analyst 52kskew reviewed this exchange’s trading orders and concluded the following:

Bitfinex trying to drag down price again, actor on multiple books. Caution liquidity getting thin, yet no breakdown yet.

In that sense, pseudonym traders LilMoonLambo replied that the Bitcoin Bitfinex whale dumping “is giving off serious 2014 BearWhale vibes”.

The lone Bitfinex whale dumping $BTC is giving off serious 2014 BearWhale vibespic.twitter.com/yRlx1RqmB7 https://t.co/ILeDN2vJtA

— LilMoonLambo (@LilMoonLambo) November 17, 2021

Bitcoin The Epicenter Of A Bear v. Bull Battle

While it’s true that traders and operators could be giving BitFinex too much credit for Bitcoin’s current price action, some indicators have begun to turn pessimists, but still far from “full bear market” mode.

According to Jarvis Labs, BTC’s 30-day Return indicator has dropped below 0%. As seen below, whenever this metric enters the green zone (below 0%) it’s usually an indication of future appreciation. In that sense, Jarvis Labs said:

Time to pay attention if you are a bull and have been looking to buy at cheaper prices. The best times to accumulate in the past year have been when this metric was in the green zone.

Some short-term holders have been shaken out and are selling at a loss, according to Bitcoin’s Wealth Multiplier. Similarly, to the 30D Return, this metric hints at a good place for BTC long-term holders to start accumulating.

Jarvis Labs marks $53,000 as the one level that must hold to continue the bull market. In addition, they want to see negative funding rates across top exchanges before starting a fresh leg up into uncharted territory. The firm said:

Market needed a healthy reset and it has been ongoing this week. Needs a bit more time to cement the bottom and start a massive leg up. Give it some time and be prepared to use the green button.

There is still hope for the bulls as Bitcoin has managed to stay above its critical support with quick buying pressure reacting to fresh decreases. In addition, 52kskew added the following on the alleged influence from Bitfinex whales on Bitcoin:

(…) forces takers hand on perp (perpetual futures contracts) premiums while collecting funding sum. Ends very soon in my opinion.

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

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