Bitcoin Teetering On The Edge: Here’s Why BTC Could Plunge Below $26,000

Samuel Edyme

1 year ago

3 mins read

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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).

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.

Bitcoin (BTC)’s price chart on TradingView — Bitcoin (BTC)’s price is moving downward to take out liquidity in the marked wick on the 1-day chart. Source: BTC/USDT on TradingView.com

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

Samuel Edyme

Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others.

Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis.

Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics.

When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…)

Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life.

In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps.

Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.”

PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp.

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