- Lookonchain attributed the recent drop in BTC’s price to a recent whale selloff.
- The drop in BTC’s price led to an increase in its social dominance as investors started to panic.
- At press time, the market leader continued to trade below the key $27K level.
Bitcoin (BTC) experienced a price drop of around 3%, which caused it to drop to sub $27K, after a whale had dumped 1,750 BTC on Binance, according to a tweet by Lookonchain published earlier today. The whale had deposited the BTC, worth $48 million dollars at the time of the transfer, yesterday evening.
The blockchain tracking firm had speculated that he may sell all of his freshly-deposited holdings shortly after the transfer was made, given that the same whale had sent 5,791 BTC on 21 April 2023, merely 5 hours before the price experienced an approximate 3% decline.
This recent drop in the market leader’s price has led to traders becoming more worried that BTC will revisit the $20K-$25K range soon, according to Santiment. In a recent tweet, the blockchain intelligence firm indicated that BTC’s social dominance had spiked again over the last 24 hours, and that increases in this off-chain metric are typically a product of fear.
At press time, BTC continued to trade below the $27K mark according to CoinMarketCap. It was, however, able to recover slightly since the whale’s selloff and was only down 1.01% for the previous 24 hours. The leading crypto’s weekly price performance was able to remain in the green at +2.82% as well.
The drop in BTC’s price had caused it to break below the 9 EMA line and 20 EMA line on its 4-hour chart, which also caused the two EMA lines to cross – triggering a bearish flag. During this drop, BTC had plummeted all the way down to a low of $26,374, but was able to recover and close the 4-hour candle back above the $26.5K support at $26,755.
Since then, BTC’s price has climbed to its current level and was looking to flip the $27K level back into support at press time. A confirmation of this happening will be when the RSI line on the 4-hour chart crosses bullishly above the RSI SMA line. Should this cross happen, BTC could climb to $27.8K in the following 24-48 hours.
On the other hand, BTC failing to close today’s trading session above the $27K point will invalidate the bullish thesis. This will result in BTC’s price testing the $26,755 support once again.
Disclaimer: The views and opinions, as well as all the information shared in this price analysis, are published in good faith. Readers must do their own research and due diligence. Any action taken by the reader is strictly at their own risk. Coin Edition and its affiliates will not be held liable for any direct or indirect damage or loss.
