Bitcoin [BTC] went ahead as nearly all of the top 50 cryptocurrencies plunged into the red. After sustaining its price above $23,000 as of August 18, BTC fell below $22,000. At press time, the coin is trading at 7.30%. Low from the last 24 hours and is trading at $21,750.63.
As this event may have pushed investors into losses, some would hope that a recovery is just around the corner. So, is there a chance BTC can regain its momentum to $25,000?
Pay attention here
CryptoQuant noted that BTC entered an overvalued region this week. In its latest release, the data analysis crypto platform said that the crypto king entered the territory when it was between the $23,000 and $24,000 region. But what does that mean in the short term?
According to the analysis, this event could mean that $25,000 could lie where BTC is offering resistance. The result of this analysis contrasts with a previous analysis by a CryptoQuant analyst named Chartoday who predicted an upward trend. CryptoQuant has pointed out a few factors for this price prediction.
whales under control
The analysis noted that whale activity increased as BTC approached $25,000 earlier. The analysis said
“Post-price, on-chain activity from whales and long-term holders surged as bitcoin price neared $25,000. As a result, whale activity increased significantly, as evidenced by the volume of 1,000 to 10,000 Bitcoin spent this week.”
While Santiment’s data confirmed this view, it showed that the whale transactions were worth US$1 million and more peppered in the last days.
While it fell as low as 101 on August 18, it rose to 258 on the same day. Also, these activities have sustained BTC volume, which remains at 17.66% at press time.
Source: Santiment
With BTC currently trading at lower levels than previously expected, that would be the case if the whales could push BTC back higher.
However, it appears that the whale action wasn’t enough to help the BTC price stay up. The current price decline could also be due to a few factors.
One that stood out was the decreasing on-balance volume (OBV). At press time, OBV was suggesting that the volume change was closer to a bearish outcome. At press time, it was 1.03 million, up from 1.23 million on August 18.
Source: TradingView
As it stands, it might appear that BTC would likely take some time to get back to $25,000. However, investors may need to keep an eye on volatility levels as a reversal can occur at any time.
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