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The markets have been weak since the crypto crash that happened at the close of the previous week. More cracks were showing, suggesting another crash could be looming. The signs of a crypto crash have been particularly evident in Bitcoin (BTC), and since it is the largest by capitalization, the losses could be more significant for altcoins.
From volume analysis, weak price action, whale activity, and short-term holder behavior, the signs were more than enough. However, this was not a signal to sell, but rather to stay cautious as more cracks emerge, despite being in a seasonal bullish period.
Crypto Crash: Taker Sell Volume Still High
To begin with, last week’s crypto crash on October 10th was not the end of the massive sell-off. Overlaying Bitcoin price on the Net Taker Volume, it still showed that the sellers were still in control. The net volume exceeded $75 million, with only about two instances of a positive net change.
The current volume was only building but was nowhere close to that seen during the crash. However, there were few similarities, and the continuation of seller dominance raised concerns. This was an indication that the crash may not have finished.
As the lower timeframes continued to show that sell pressure was still present, it hinted at this crash. Usually, prices follow the bigger timeframe trend, but it is the smaller timeframes that initiate moves; thus, their outlook is key. But was this mass sell volume the only signal that Bitcoin and the crypto markets, by extension, could face another crash?
Short-Term SOPR Hints At More Pressure
Additionally, the pressure to break down was added by the fact that short-term holders were taking profit.
As per analysis by CryptoQuant author Maartunn, the SHT-SOPR indicator rejected Bitcoin price at the break-even level. This was a signal that these holders were taking profits after having taken long positions on the reversal seen on Monday. The metric at the time of writing was at its final stage before those still holding entered into loss.
This was added to the top reasons for hinting of a looming crypto crash in the near future. The indicator is key to evaluating the behavior of holders, which offers insights into where Bitcoin price could head next.
Short-term holders are important because they drive prices, especially during seasonal timeframes, such as the last quarter of the year, which is often bullish. This meant the current period was not shaping well until the behavior of this lot started to shift.
Binance and “Insider” Whale Shorts Bitcoin Price
That was not enough, as the activity of the exchanges and whales was also giving bearish sentiments. As per OxNobler on X (formerly Twitter), Binance was dumping millions of dollars’ worth of Bitcoin. The crypto analyst claimed that Binance was attempting to liquidate long positions in BTC, a classic form of exchange manipulation.
That was not the end. The “insider” whale who earlier profited about $500 shorting right before President Trump’s statement added another short position. The order was worth $140 million with a 5x leverage. The magnitude of the leverage was not as convincing as the earlier trade.
On the charts, Bitcoin price was approaching $110,000, and this level needed to hold to avoid a crash. However, if the crypto crash occurs, Bitcoin price could once again break below this level.
In the meantime, a hold above it would invalidate this potential crash and steer the broader crypto sector back into an uptrend. Notable was the seasonal bullishness of this period of the year.
