Bitcoin price plunged to two-month lows amid news that SpaceX is reducing its BTC holdings. Meanwhile, Santiment warns that the price of BTC may continue to drop over the next few days as whale activity continues.
Bitcoin decline may continue as whale activities continue!
Bitcoin (BTC) price has dropped below $26,000 in the past 24 hours. During this time, the BTC price declined to $ 25,409.11. However, the leading crypto recovered somewhat and managed to rise above $ 26 thousand. Currently, the BTC price has dropped 7.44% on the day.
Following the market-wide selloff, blockchain intelligence firm Santiment warns that the dust may be far from subsiding and the price of BTC could continue to drop over the next few days. Whale trading activity hit a monthly high today, according to Santiment. The analytics platform says that activity started before the crash. He states that this also indicates that BTC may continue to decline.
🐳 The dust has far from settled after #crypto markets had one of its sharpest price drops of 2023. We are seeing a large amount of $1M+ $BTC transactions, indicating whales are very active on this dump. But the amount of large wallets is not falling. 👍 https://t.co/WtXYUPdFOf pic.twitter.com/gdrbUD1wFO
— Santiment (@santimentfeed) August 18, 2023
Analyst: $25,000 will be an “epic level” for Bitcoin!
Before news of SpaceX’s depreciation that plunged both Bitcoin and altcoins emerged, investors were hoping $28,000 would provide strong support. After all, Bitcoin was already going downhill. However, it had multiple support trendlines and a psychological safety net of the $28,000 mark. This worked in his favour. However, this was not enough to stop the bleeding. At the time of this writing, BTC is trading below $26,500.
But according to popular trader and analyst Gareth Soloway, $25,000 is now the main focus when it comes to buying BTC. In this context, Soloway said, “Technically, it broke the 28,000 level. He has about 24 hours to regain this level. Otherwise, it will most likely move towards the 25k level. “Bitcoin at 25,000 will be psychologically epic,” he says.
BTC 1-day chart. Source TradingViewIs the excitement around the Spot Bitcoin ETF dissipating?
Gareth Soloway states that when BlackRock announced plans for a Bitcoin spot price exchange-traded fund (ETF) in the US, BTC was hovering in the $25,000 region and sent the market towards $30,000 and above after the news.
With the decision to be made in the legal battle to launch a different US spot ETF called the Converted Grayscale Bitcoin Trust (GBTC), the feeling of déjà vu has become even more tangible. “The news that Black Rock has applied for a spot ETF came out here,” Soloway said. The rise of this news from 25,000 to 31,000 was largely a result of the optimism that it was confirmed.”
“Maximum pain” for Bitcoiner is $9,000
But on the downside, $20,000 still looks big as the main feature on the chart, even though it hasn’t been touched since mid-March. Gareth Soloway expresses his views on this subject:
If $25,000 is broken, the next stop will be $20,000. This is a key level. Because it represents a point where SVB fails. The money escaped the banks and was stored in BTC. If 20k fails, 52 weeks (current cycle lows) will likely be tested at $15,700. A lower target of 12-13k, 9-10k (max pain) is still on the table.
“Smart money will gradually buy at these levels”
Still, Soloway says he sees no “reason” for a break below the November 2022 cycle base. But apart from a mass sell-off in risk assets that drove US stocks back to then-levels. As you follow on Kriptokoin.com, BTC was last traded below $10,000 in September 2020. “Smart money that continues to believe in the digital gold aspect of Bitcoin will gradually buy from key supports and DCA,” Soloway said. I continue to be bullish on Bitcoin over the long term,” he adds.
As a potential beacon of hope, Bitcoin liquidations, most of which occurred on August 17, have begun to cool at the time of writing. According to CoinGlass data, these are the highest amounts since the FTX explosion in November 2022.
Crypto 24-hour liquidation heatmap. Source: CoinGlassLower levels are unlikely for Bitcoin!
One of the notable losses of the overnight crash was Bitcoin’s 200-week simple moving average (SMA). The 200-week SMA, a classic bear market support level, has seen increasingly challenging trading conditions over the past year. In 2022, BTC price action spent the longest time below the trendline. It was also lacking in support once again as of August 18.
According to Caleb Franzen, senior analyst at Cubic Analytics, the “cloud” around the 200-week MA indicates a buy zone. “In June, when Bitcoin retested the 200-week MA cloud, I was not bearish. “I am also not in a bearish mood tonight as Bitcoin retests the 200-week MA cloud,” he says. Franzen states that $25,000 is its limit. It also suggests that lower levels are unlikely.
BTC 1-week chart with 200 SMA. Source: TradingView
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