Bitcoin (BTC) is heading lower, judging by the candlestick arrangement on the daily chart, dampening hopes that the coin is in the early stages of a recovery.
In fact, the coin is making lower lows despite the downtrend momentum slowing down.
As a result of yesterday’s sell-off, Bitcoin has moved back into a bear breakout pattern, in line with the general trend over the last week, which was also influenced by the sharp sell-off in the last week of April.
BTC then fell from its peak of $31,000, which was its highest level this year.
Sell-off blamed on sentiment
Bitcoin’s price plunge may be due to sentimental factors.
Yesterday, a large transfer of 1,750 BTC was made to Binance, the world’s largest cryptocurrency exchange by trading volume.
About 30 minutes ago, a whale deposited $1,750 in BTC ($48 million) into #Binance. Whales deposited $5,791 in Bitcoin ($163 million) on April 21
, after which the Bitcoin price fell nearly 3% in 5 hours. Maybe the 1,750 $BTC won’t be sold, maybe it will. In any case, keep an eye on the price changes of $BTC.
Soon after, the price dropped before recovering. However, a plunge late in the New York trading session forced the coin lower.
By the close of yesterday, the coin was trading at its lowest level of the week. Considering the speed of the sell-off, there could be more selling in the coming days.
While the price struggles, the number of all-coiners, or individuals who own 1 BTC, is likely to increase. This is because as the price falls, it becomes more affordable for supporters of the token.
Most believers believe that Bitcoin will anchor the future of money as a medium of exchange and a store of value.
According to data from blockchain analysis platform Glassnode, there are currently more than 1 million addresses holding at least 1 BTC.
Bitcoin (BTC) Price Analysis
Bitcoin fell 5% in the last trading day and is down 12% from its April peak, the coin tracker shows.
Price action favors sellers at the spot rate. Specifically, the existing BTCUSDT candlesticks aligned to swing in support of last week’s bearish breakout pattern that forced the coin below $27,000.
Therefore, BTC selling could continue on a continuation of this pattern, especially if there is a close below $27,000 today.
If volumes also expand, the likelihood of a quick drop below $25,800 and $25,000 will increase. This could allow conservative traders to align with the trend and ride the emerging market.
This would change only if there is a sharp expansion above $28.3k with equally high levels of participation. In this case, BTC could see a recovery towards $31,000.
