Bitcoin, the cryptocurrency often referred to as ‘digital gold’, has been on a roller-coaster ride lately. Over the past decade, Bitcoin has transformed from an obscure digital token into an economic powerhouse, drawing attention from retail investors to global financial institutions.
However, as recently observed over the past 24 hours, the asset’s resistance is being tested as a report from Santiment reveals chances of it plunging below the critical $26,000 mark.
Whale Activity Driving Bitcoin Price Movement
Whale activity, or large-scale investors, has historically played a pivotal role in determining the direction of any crypto asset, and currently, Bitcoin is not an exception. Blockchain intelligence firm, Santiment, recently shed light on this phenomenon via a post on X (formerly known as Twitter).
Related Reading: Bitcoin Speculators Retreat As Long-Term Holders Double Down Since $69,000 Peak
According to the firm, the rapid price decline of Bitcoin might have been influenced by heightened whale transaction activity. And despite the substantial loss BTC has suffered in value over the past day, Santiment noted “the dust has far from settled.”
This statement in an actual sense means Bitcoin’s price decline might just be starting, as according to Santiment, “whales are very active on this dump” and “the amount of large wallets is not falling.”
The Blockchain intelligence firm further revealed that the surge in large transactions had commenced even before the significant market drop, hinting at the possibility of a sustained price drop.
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
BTC Plunge Below $26,000 Imminent?
Given the fundamentals pointed out by Santiment, Bitcoin could see a further plummet potentially dropping it below the $26,000 mark. Moreover, from a technical perspective, such a price move may not actually be far from happening.
Looking at Bitcoin’s chart on the 1-day timeframe, the asset has a two-way movement of taking out liquidity which is the upside and downside. However, the likelihood of tapping into the downside liquidity appears more convincing.
Given the current market trajectory, which leans bearish, each significant price movement typically correlates with liquidation efforts. As the market currently trends downwards, the most immediate liquidity target seems to be the wick beneath the $26,000 zone.
To clarify, a wick refers to the thin line/vertical line above or below the main body of a candlestick. The wick represents the highest and lowest prices of an asset during a specific time frame, while the main body of the candlestick indicates the opening and closing prices
As for its current price, Bitcoin is changing hands at $26,468 at the time of writing, down by nearly 10% over the past 24 hours. The asset has made significant movement in the past day recording a 24-hour high of $28,507 and a 24-low of $25,649.
Featured image from Unsplash, Chart from TradingView