- Bitcoin’s price drops 3% below $27K due to whale selloff.
- Speculation that significant cryptocurrency holders may sell their holdings.
- Traders concerned about BTC revisiting $20K-$25K range.
Bitcoin (BTC) encountered a slight setback, with a 3% dip in its price, leading to a drop below the $27K mark. This was attributed to a whale who offloaded 1,750 BTC on Binance, as reported by Lookonchain via Twitter. The transfer, which occurred yesterday evening, amounted to a staggering 48 million dollars in value.
According to the blockchain tracking firm, individuals who recently deposited significant cryptocurrency may opt to sell their holdings shortly. This speculation is based on the fact that the same individual had sent a substantial amount of BTC just five hours before a 3% price drop on April 21, 2023.
Santiment, the blockchain intelligence firm, has reported that the recent decline in the market leader’s price has sparked concerns among traders about the possibility of BTC revisiting the $20K-$25K range. According to the firm’s tweet, BTC’s social dominance has surged in the last 24 hours, which usually indicates fear. Traders and investors closely monitor this off-chain metric as it provides valuable insights into market sentiment.
As of publication, CoinMarketCap reports that BTC is still trading below the $27K threshold. Despite experiencing a whale’s selloff, the cryptocurrency has recovered slightly and only suffered a 1.01% dip in the past 24 hours. Encouragingly, BTC’s weekly price performance remains positive, with a gain of 2.82%.
The recent decline in BTC’s value resulted in a significant breach below the 9 EMA and 20 EMA lines on its 4-hour chart. This has led to a bearish flag, as the two EMA lines have crossed. The drop in value saw BTC plummet to a low of $26,374, but it managed to recover and close the 4-hour candle above the $26.5K support level at $26,755. Despite the volatility, BTC remains a valuable asset for investors to consider.
Since its initial surge, the price of BTC has continued to climb and is currently poised to reclaim the $27K level as a support. A bullish crossover of the RSI line on the 4-hour chart above the RSI SMA line will confirm this. BTC could reach $27.8K within 24-48 hours if this occurs.
However, if BTC fails to secure a closing price above the $27K mark by today’s trading session’s end, it will invalidate the bullish thesis. Consequently, BTC’s value will undergo a retest of the $26,755 support level.
Disclaimer: The insights, perspectives, and data presented in this price analysis are published in good faith. Readers must conduct their own research due diligence. Any decision made by the reader is solely their responsibility, and Crypto Outlooks shall not be held responsible for any consequential or incidental harm or loss.
