- Large-volume holders keep the pressure on Bitcoin price, stifling its recovery to $20,000.
- Only 1,938 whales hold between 1,000 and 10,000 BTC compared to 2,123 in June 2022.
- Bitcoin price erases most of its weekly progress as bulls seek support at $17,000.
Bitcoin price is wobbling to the weekend session after encountering sudden correction from gains accrued earlier in the week. The largest cryptocurrency climbed to a monthly high at $18,380 following positive investor sentiment on the future of crypto assets when the US Consumer Price Index (CPI) returned lower-than-expected figures.
On Wednesday, an expected interest rate hike of 0.5% by the Federal Open Market Committee (FOMC) was a positive signal for crypto markets, with analysts projecting that BTC will trade above $20,000 going into the New Year.
Bitcoin price plunges to $17,000 after audit firm Mazars halts work with crypto clients
Mazars, an international audit firm working with Binance and other cryptocurrency exchanges, has temporarily suspended all engagements with its crypto clients. Binance, KUCoin and Crypto.com are the exchanges affected by the firm’s decision.
A statement published by Binance on Friday confirmed the rumor that it “will not be able to work with Mazars for the moment.” Mazars report on Binance’s “proof of reserves” appeared overcollateralized. Moreover, the report, which is no longer available on the auditor’s website, failed to show any of the largest exchange’s liabilities.
Bitcoin price dropped to $17,000 after the news from Mazars reverberated across the market on Friday. Binance has been making headlines this week for the wrong reasons, including rumors that the US Justice Department is investigating the exchange and its top executives for money laundering.
It is a sensitive time in the cryptocurrency industry, especially with regulators, stakeholders and government authorities mulling over FTX’s collapse. The new CEO, John Ray III’s top priority is the recovery of assets belonging to the defunct exchange. Politicians and regulators are working to ensure consumers are protected from the actions of a few inexperienced individuals.
Bitcoin price holds crucial support, but for how long?
Bitcoin price attempted to break above a crucial falling trend line, as shown on the eight-hour timeframe chart below. Although this move could have pointed BTC in a northbound direction to $20,000, overhead pressure snuffed the bullish spark prematurely on Friday, leaving Bitcoin with no guards to $17,000.
BTC/USD eight-hour chart
The bellwether cryptocurrency slipped below the main moving averages like the 100-day Exponential Moving Average (EMA) (in blue) at $17,330 and the 50-day EMA (in red) at $17,196, suggesting that declines could extend further.
Support at $17,000 remains crucial to resuming the Bitcoin price uptrend. However, if bears push the price below the same level, BTC might revisit downhill levels at $16,388 and the primary support at $15,650.
Insight from Santiment highlights increased selling activities among whales with coins between 1,000 and 10,000. Currently, only 1,938 addresses call this cohort home compared to 2,123 addresses in June 2022.
 [17.41.08, 16 Dec, 2022]-638068036057348037.png)
Bitcoin Supply Distribution
The above chart shows Bitcoin price dropping alongside the on-chain metric, meaning whales substantially impact the trend. Therefore, an end-year rally could be a pipe dream if large-volume holders keep emptying their wallets.
On the upside, holding onto support at $17,000 may keep investors interested in BTC. If bulls push for a break above the falling trend line, as shown in the chart and succeed, Bitcoin price might quickly close the gap to $20,000.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Ethereum dips slightly amid Renzo depeg, BlackRock spot ETH ETF amendment
Ethereum (ETH) suffered a brief decline on Wednesday afternoon despite increased accumulation from whales. This follows Ethereum restaking protocol Renzo restaked ETH (ezETH) crashing from its 1:1 peg with ETH and increased activities surrounding spot Ethereum ETFs.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective (INJ) price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price. Coupled with broader market gloom, INJ token’s doomed days may not be over yet.
US intensifies battle against crypto privacy protocols following crackdown on Samourai Wallet
CEO Keonne Rodriguez and CTO William Lonergan of Samourai Wallet were arrested by the US Department of Justice (DoJ) on Wednesday and charged with $100 million in money laundering on a count and illegal money transmitting on another count. This move could see privacy-focused cryptocurrencies take a dip.
Near Protocol Price Prediction: NEAR fulfills targets but a 10% correction may be on the horizon
Near Protocol price has completed a 55% mean reversal from the bottom of the market range at $4.27. Amid growing bearish activity, NEAR could drop 10% to the $6.00 psychological level before a potential recovery. A break and close above $7.95 would invalidate the downleg thesis.
Bitcoin: BTC post-halving rally could be partially priced in Premium
Bitcoin (BTC) price briefly slipped below the $60,000 level for the last three days, attracting buyers in this area as the fourth BTC halving is due in a few hours. Is the halving priced in for Bitcoin? Or will the pioneer crypto note more gains in the coming days?