Bitcoin Price Prediction: BTC Tumbles 3%, But Whales Buy The Dip
The Bitcoin price dropped over 3% in the past 24 hours to trade at $104,416.26 as of 7:20 a.m. EST as a wave of panic selling hit the market.
But amid the continued pullback in the BTC price, some bold whales are buying the dip.
According to on-chain analytics platform Lookonchain, a whale that had been dormant for a year withdrew 800 BTC worth $85.5 million from crypto exchanges Binance and OKX.
Another whale withdrew 190 BTC worth $19.76 million from Binance using a new wallet.
Meanwhile, a whale that has been actively buying Bitcoin recently withdrew another 174 BTC valued at $18.64 million from Binance. That particular whale now holds 3,036 BTC worth $315 million, Lookonchain added.
Bitcoin Loses A Key Support After Rejection From Resistance, Technicals Flash Bearish
The drop in BTC’s price comes after the largest crypto by market cap was rejected by the $111,600 resistance in the past 48 hours.
That was a key technical barrier, because it is also confluent with both the 9-day and 20-day Exponential Moving Averages (EMAs). As such, a confirmed daily close above the level would have marked the end of BTC’s bearish trend.
Daily chart for WBTC/USD (Source: GeckoTerminal)
However, that rejection has issued traders a continuation signal that is also supported by other bearish indicator standings. Bitcoin’s price now finds itself in a descending price channel after it failed to overcome the major technical barrier as well.
Among those indicators is the Moving Average Convergence Divergence (MACD). Following the aforementioned rejection, the MACD line crossed below the MACD Signal line, which is a classic indication that an asset has entered a short-term negative trend.
In addition to that, the Relative Strength Index (RSI) has plummeted as well. Traders usually see this as a sign that sellers are growing stronger against buyers. With the negative slope of the RSI line and the indicator’s reading above the oversold threshold of 30, it seems there is room for BTC to retrace some more.
If BTC continues to trade in the bearish channel for the next 48 hours, it risks losing the immediate support level at $102,695. Falling below this technical safety net might then lead to even more losses for the crypto.
In a more bullish scenario, more whales could soon buy the dip. With enough pressure from these large investors, BTC could try to reclaim the support of the recently-lost $106,920 mark. Thereafter, continued buying activity might result in a retest of the previously-mentioned $111,600 barrier.
If that level is breached, momentum could shift from bears to bulls and result in a climb to as high as $117,483 in the short term. This would represent around a 9% gain from current levels.
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