Are Whales Restraining Bitcoin Price From An End-Year Rally In The Midst Of FTX Contagion?

• Enormous volume holders keep the pressure on Bitcoin price, smothering its recovery to $20,000.
• Only 1,938 whales hold somewhere in the range of 1,000 and 10,000 BTC compared to 2,123 in June 2022.
• Bitcoin price eradicates a large portion of its week by week progress as bulls look for support at $17,000.

There was an unexpected correction of gains from prior in the week.

At the point when the US Consumer Price Index (CPI) returned lower-than-expected figures, positive investor sentiment on the future of Cryptocurrencies prompted a monthly high of $18,380.
On Wednesday, an expected interest rate hike by the Federal Open Market Committee (FOMC) was a positive sign 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 stops work with Crypto Clients

Mazars, an international audit firm working with Binance and other cryptocurrency exchanges, has briefly suspended all engagements with its crypto clients. Binance, KUCoin and Crypto.com are the exchanges impacted by the firm’s decision.

The rumor that it can’t work with Mazars for the moment has been confirmed by a statement published on Friday.
Mazars report on the proof of reserves appeared overcollateralized. Moreover, the report, which is as of now not available on the auditor’s website, failed to show any of the biggest exchange’s liabilities.

Bitcoin price dropped to $17,000 after the report from Mazars reverberated across the market on Friday. Rumors that the US Justice Department is investigating the exchange and its top executives for money-laundering is one of the reasons why it has been standing out this week.

It is a delicate time in the industry, especially with regulators, stakeholders and government authorities considering the collapse of FTX.
John Beam III is the new CEO and his first concern is to recuperate assets from the old exchange.
Politicians and regulators are attempting to ensure consumers are protected from the actions of a couple of inexperienced individuals.

Bitcoin price holds crucial support, yet for how long?

Bitcoin price attempted to break over a crucial falling trend line, as shown on the eight-hour timeframe chart below. Although this move might have pointed BTC in a northbound direction to $20,000, overhead pressure snuffed the bullish flash prematurely on Friday, leaving Bitcoin without any guards to $17,000.

The bellwether Cryptocurrency slipped below the vitally 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.

It’s crucial that support at $17,000 is maintained. Notwithstanding, assuming that bears push the price below a similar level, BTC could revisit downhill levels at $16,388 and the primary support at $15,650.

Insight from Santiment highlights expanded selling activities among whales with coins somewhere in the range of 1,000 and 10,000.In June 2022, 2,123 addresses called this cohort home.

The above chart shows Bitcoin price dropping alongside the on-chain metric, importance whales substantially influence the trend. Therefore, an end-year rally could be a pipe dream if huge volume holders continue to discharge their wallets.

On the potential gain, holding onto support at $17,000 may keep investors interested in BTC. In the event that bulls push for a break over the falling trend line, as shown in the chart and succeed, Bitcoin price could rapidly close the hole to $20,000.