© Reuters. Investors Fear BTC Will Revisit From $20k To $25k After Losing $27k
- Lookonchain attributed the recent decline in the BTC price to the recent whale selling.
- BTC’s price decline increased its social dominance as investors started to panic.
- At the time of writing, the market leader is still trading below the key $27k level.
(BTC) saw the price drop around 3%, dropping it below $27K, after a whale dumped 1,750 BTC on Binance, according to a tweet posted by Lookonchain earlier today. The whale had deposited $48 million worth of BTC at the time of the transfer yesterday evening.
$BTC price is down 3% again after this whale move. https://t.co/aIRsebH12n pic.twitter.com/jrKdBKybbK
— Lookonchain (@lookonchain) May 19, 2023
The blockchain tracking company speculated that he might sell off all of his newly deposited holdings shortly after making the transfer, given that the same whale sent 5,791 BTC on April 21, 2023, just 5 hours before the nearly 3% drop in price.
This recent price drop of the market leader has traders worried that BTC will revisit the $20k to $25k range soon, according to Santiment. In a recent tweet, the blockchain intelligence firm noted that BTC’s social dominance has risen again over the past 24 hours, and that increases in this off-chain metric are usually driven by fear.
At press time, BTC continues to trade below the $27k mark according to CoinMarketCap. However, it has been able to recover slightly since selling off the whale and has only fallen by 1.01% over the past 24 hours. The leading weekly price performer for the cryptocurrency managed to stay in the green at +2.82% as well.
4-hour chart (Source: TradingView)
The decline in BTC price caused it to break below the 9 EMA and the 20 EMA line on the 4-hour chart, which also caused the two EMA lines to cross – triggering a bearish flag. During this decline, BTC fell all the way to as low as $26,374, but was able to recover and close the 4 hour candle again above $26.5k support at $26,755.
Since then, BTC price has rallied to its current level and was looking to flip the $27k level back into support at press time. Confirmation of this will be when the 4-hour chart’s RSI line crosses upwards above the RSI SMA line. If this cross occurs, BTC could rise to $27.8k in the next 24-48 hours.
On the other hand, BTC’s failure to close today’s trading session above $27k will invalidate the bullish theory. This will lead to BTC price testing the $26,755 support again.
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After investors feared that BTC would revisit between $20k and $25k after losing $27k, the coin issuance debut.