At the beginning of this week, the price of one Bitcoin dropped to less than $9,000. Investors called this a rapid pullback. It was triggered by the liquidation of $30 million in long investments on the BitMex. The market details show that the selling was from cryptocurrency whales closing their positions. This lead to panic selling by retail investors.

Whales are individual investors who have a huge amount of Bitcoin. Just one of them has enough power to make a big impact on Bitcoin pricing. Their recent big sell-offs suggest that there could be a bear trend in the market. Ki Young Ju, who is the CEO of CryptoQuant, explained that the Bitcoin reserve at Gemini was at a peak a few days ago. It has now decreased. In the short-term, this is a buying opportunity. For the long-term, there is a downward trend.

The most recent time Bitcoin reserves had a fast drop was in February 2020. At that time, Bitcoin's value was $10,500. After the six-week drop, its value was as low as $3,600. There are a few reasons why whales are selling. The $10,500 was strongly rejected. Volume is declining. Mining is more difficult.

The whales who have a large amount of Bitcoin might want more liquidity. When there are not enough buyers and a whale sells a lot of Bitcoins, this could trigger a wave of selling among other whales. This is a rapid correction in a short amount of time. An example is the 50 percent overnight price drop on March 13. This resulted in $1 billion of liquidated futures. It was the biggest pull-back in Bitcoin's history.

Whales are taking their profits while they can. A 130 percent rally since March 13 gives them a good opportunity. It is also a hedge against the current low trading volume. Whales may also be concerned about politics and global stock markets. Some upcoming support levels include $6,000, $6,400, $7,100 and $7,400. For the next few weeks, investors will be watching to see if Bitcoin can stay above $9,400. If not, there could be another big correction.