- BTC’s price fell below the crucial $26K mark over the past 24 hours.
- Santiment warns that BTC’s price may continue to drop in the coming few days as whale activity continues.
- BTC could rebound back above the $28,295.38 level if it is able to break above the 200-day EMA line.
The price of the market leader Bitcoin (BTC) fell below $26K over the past 24 hours, according to CoinMarketCap. During this period, the cryptocurrency’s price had fallen to a low of $25,409.11. This was after BTC had reached a 24-hour high of $28,655.50.
The leading cryptocurrency was able to recover somewhat to trade above $26K at press time. Nevertheless, BTC’s price was still down 7.44% for the day. Although the total cryptocurrency market cap plummeted 6.74% throughout the past day of trading, BTC’s was slightly outperformed by the altcoin market, as its dominance slipped 0.41%.
Following the market-wide selloff, the blockchain intelligence firm Santiment warned that the dust may be far from settled and BTC’s price may continue to drop in the coming few days. According to the firm, whale transaction activity soared to a monthly high today. The post added that the activity started prior to the dump, which suggests that BTC may continue to drop.
Over the last two days, the price of BTC experienced a sharp decline of over 7%, causing it to breach both the 9-day and 20-day EMA indicators. Additionally, the cryptocurrency also fell below critical support levels at $28,295.38 and $26,915, and remains below these significant thresholds at press time.
The medium-term bearish rising wedge pattern appears to have been confirmed. As a result, there is a potential for further price decrease in the upcoming 24 to 48 hours. If this bearish scenario plays out, it is plausible that the market leader’s price might decrease to around $24,200 in the coming days.
However, if BTC manages to achieve a daily closing price above $26,915 within the next 48 hours, the bearish outlook will be invalidated. If this occurs, BTC could initiate a recovery phase, potentially aligning with the aforementioned medium-term bearish pattern.
This rebound could push the cryptocurrency’s price back above the $28,295.38 level. A definitive sign of recovery would be the breach of the 200-day EMA line at $27,280.91.
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