Bitcoin (BTC-USD) has reversed its post-Jackson Hole gains and is at risk of a larger correction.
BTCUSD – Weekly Chart
The price of BTC reversed some post-Powell gains to retest the early support. The $100k level could now act as a magnet for the price.
Bitcoin’s Friday rally was reversed after a whale investor dropped a large 24k balance into the market, causing a mini “flash crash” with a sharp drop in ten minutes.
“This entity liquidated their entire 24,000 balance, sending all of it to Hyperunite. They transferred 12,000 just today and are still actively selling, which is likely contributing to the ongoing price drop,” said analysts at Timeandchain index. The position was worth more than $300 million in total.
It was also noted that this was a long-held position for the investor.
“The funds originally came from HTX about six years ago and had remained inactive until recent transactions involving one of their addresses”.
Bitcoin had rallied 4% on Friday after Jerome Powell took a dovish stance toward rate cuts for the U.S. economy. However, options markets are not convinced of the presence of some risk aversion.
Investor activity on the Deribit options exchange showed a large concentration of puts into the December expiries, which would signify hedging and bearish activity.
Michael Saylor’s Strategy company was still buying up further supply with a purchase of 3,081 Bitcoin for $356.9 million last week, ahead of the market drop. Strategy acquired the coins at an average price of $115,829.
The latest bearish activity in BTC also hurt Ethereum, which had hit a fresh record high over the weekend. The week ahead will be important to see if a floor comes in ahead of the $100k price in bitcoin. Further selling could spook the market and lead to outflows from the ETF market.
Bitcoin’s dominance was still comfortably above 50% at 57.4%, with Ethereum holding 14.4% of the current market cap.
