- 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.
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