According to analytics firm, Santiment, Bitcoin Whales have been observed to be buying the dip. And this is not the first time, this month.
Through a Tweet, the firm notes that several active Bitcoin whale addresses have accumulated approximately 40,000 BTC following the price dip last week. These addresses are the ones holding between 100 to 10,000 BTC.
When Bitcoin could not break past 60k and kept going back to 56k time and again, it was clear that we might test lower support. And that is what happened. Bitcoin’s price today, according to CoinMarketCap, is at $56,265.12 (at time of writing), down by 0.86% in the last 24 hours.
Notably, this consistent drop and stagnation have liquidated a lot of long positions, neutralizing the market. Thus, the current correction strategies.
Santiment further said that despite the recent bearish price action, Bitcoin supply continues to move off of exchanges. As a result, lowering the risk of a mass selloff.
“#Bitcoin has sunk in the past 24 hours and is on the verge of dropping below $56k once again. Despite this, $BTC‘s supply continues moving away from exchanges, lowering selloff risk. $USDT also remains high on exchanges, indicating high buy.”— Santiment (@santimentfeed) November 22, 2021
Additionally, and according to the analytics firm, Bitcoin’s current social sentiment is at its most bearish level in seven weeks. Santiment has a weighted sentiment tracker analyzing both the positive and negative commentary surrounding a crypto asset. The firm recently noted that prices tend to top out when social sentiment gets too high and bottom out when it gets too low.
Santiment also tracked a change of Bitcoin’s Binance funding rates.
“When Bitcoin was well above $60k from mid-October to mid-November, Binance’s funding rates for most assets were well in positive territory. This is indicative of trader over-confidence, and prices often overcorrect. Now, things look far more neutral.”
Bitcoin’s Missed Targets
There were various predictions on the BTC hitting $100 000 by the end of 2021. While this might still hold, the November predictions have not come true.
PlanB was one of the many analytical firms that had projected Bitcoin’s surge past $100.000. One of its analysts behind the stock-to-flow (S2F) model has admitted his prediction of $98,000 at the end of November might be a “first miss,” since he started charting BTC’s monthly targets.
He still believes that Bitcoin price will still hit the S2F milestones. But he candidly said that this one (the $98k target) is “an outlier” and has never happened in the past ten years before.
According to data obtained from CoinGecko, On November 10, Bitcoin rallied to an all-time high of $69,044.77. But since then, the crypto’s price has only been spiraling lower and lower.
With only days to the end of November, downside pressure, and downside sentiment across the market, PlanB has acknowledged that the BTC will not hit the November price target.