BTC Faces Potential Revisit to $20K-$25K Range as Investors Worry Following $27K Loss
Bitcoin (BTC) encountered a price drop of approximately 3%, pushing its value below $27K, after a significant whale sold 1,750 BTC on Binance, as reported by Lookonchain in a recent tweet. The whale deposited the BTC, worth $48 million at the time, on the exchange the previous day.
Lookonchain speculated that the whale might sell all the newly deposited holdings soon after the transfer, as the same individual had sent 5,791 BTC on April 21, 2023, just five hours before BTC’s price experienced a similar 3% decline.
The recent decline in BTC’s price has raised concerns among traders who fear that it could revisit the $20K-$25K range, according to blockchain intelligence firm Santiment. In a tweet, Santiment indicated that BTC’s social dominance had surged over the past 24 hours, which is typically an indication of fear in this off-chain metric.
At the time of writing, BTC was still trading below the $27K level according to CoinMarketCap. However, it had slightly recovered from the whale’s selloff and was down only 1.01% over the previous 24 hours. BTC’s weekly performance remained positive with a gain of 2.82%.
On the 4-hour chart for BTC/USD, the price drop caused BTC to break below the 9 EMA line and 20 EMA line, resulting in a bearish flag as the two EMA lines crossed. During the decline, BTC reached a low of $26,374 but managed to recover and close the 4-hour candle above the $26.5K support level at $26,755.
BTC’s price has since climbed to its current level and aims to reclaim the $27K level as support. Confirmation of this would occur if the RSI line on the 4-hour chart crosses above the RSI SMA line in a bullish manner. In such a scenario, BTC could rise to $27.8K within the next 24-48 hours.
However, if BTC fails to close the current trading session above the $27K mark, it would invalidate the bullish outlook and potentially lead to a retest of the $26,755 support level.