Cryptocurrency analyst Lark Davis has warned bitcoin investors they should avoid becoming “whale food” at a time in which the price of BTC has dropped over 12% in the last 24-hour period to less than $35,000.
According to the Daily Hodl, Davis warned in a new synopsis of crypto markets that large bitcoin holders are capitalizing on BTC’s recent price drop to buy the coins that retail investors could panic-sell as they see the price of the flagship cryptocurrency drop.
The analyst was quoted as saying:
There are very rich and very powerful players in this market who are very good at manipulating the market.
Per Davis, these BTC whales “play the game with billions of dollars in capital” and shake the market “with massive selloffs” while shorting it to make a profit. When the price of the cryptocurrency drops, he added, they buy the coins retail investors are selling at a discount.
He added that through this process whales shake investors out of their positions. He warned his followers to avoid becoming “whale food.” Data from TradingView shows that long positions on Bitfinex plunged amid the sell-off, which could imply the drop was a long squeeze.
While the cryptocurrency market has seen its volumes surge over the last few weeks, the sell-off started over the weekend when trading volumes drop and institutions aren’t looking at the charts. Ahead of the sell-off, however, CryptoQuant CEO Ki Young Ju revealed that its Miner Position Index looked “enough to make a local top.”
This, he added, as miners were selling BTC. They have reportedly been doing so since December, but the “correction was tiny due to institutional buying power.” Despite the correction, most analysts appear to still be bullish on BTC.
Peter Brandt, the analyst who called bitcoin’s 84% decline in 2018, has revealed he believes BTC’s parabolic advance is “not even close” to being broken, which implies the cryptocurrency’s upward movement hasn’t lost steam.
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