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Crypto Whale Buying Activity Is Good and Bad News for Bitcoin Bulls

Lawrence Meyers
Bitcoin investors are not really driving the price higher but rather whales are buying low and forcing a short squeeze, just as suspected. | Source: Shutterstock

By CCN: A bitcoin analyst and blogger confirms that the recent rise in the bitcoin price was not due to any kind of organic investor flow.

My theory was that crypto whale traders swooped in late last year not merely because of the 85% decline in BTC but because of a key technical trading factor – and nothing more.

Willy Woo confirms that the recent price rise was driven more by whales buying and trying to manufacture a short squeeze.

willy woo tweet

Willy Woo points out bitcoin short squeeze | Source: Twitter

This is both good news and bad news for bulls.

Good News for BTC Bulls

The good news is that bitcoin will behave like most low-float illiquid stocks.

With low-float illiquid stocks, the limitation on share count means that the stock will always be subject to high levels of volatility and large spreads on the bid-ask.

Read the full story on CCN.com.