Recently, the Bitcoin price has fallen below the $ 10,000 and $ 9,800 supporters. As a result, the price was even below the $ 9,760 and the 100-hour simple moving average. Recently there was a break below the $ 9,500 support.
Possible reasons for the Bitcoin price crash
Josh Rager, an analyst, commented that BTC believes he must complete $ 9,533 a week from Sunday to prevent a “lower” level of support from forming. However, in the further course of the analysts have begun to write a statement that clarified how it could have come to the departure of the bear, whereupon some interesting theories have arisen.
A special feature is a $ 120 million buy wall on BitMEX (if it exists in the crypto market) that may have affected today’s retreat, but it has not yet been determined. The trader, who appears under the name CryptoMonk, suspects that the buy wall was “someone trying to unload some corn”. In a nutshell: A big seller has set up a buy wall, with which he has maintained the Bitcoin price and at the same time unloaded from his own pile.
Whale alert at the crypto market
Additionally, over time, there have been an extraordinary number of large Bitcoin referrals. The Whale Alert, a Twitter-based crypto-transactional bot, signaled a transfer of 8,180 BTC ($ 82 million) from an unknown wallet to another unknown wallet on August 27. It is the third massive transfer of the last three days.
The day before the transaction was 12,000 BTC ($ 124 million) and on August 24, $ 33,706 ($ 341 million) in the transfer. While large crypto transactions are commonplace in the industry, half a billion US dollars are noticeable to BTC within three days. Further analysis of the transactions clearly reveals that these mega-transfers are one single address.
The question remains as to which actors could be behind the transfers and why they prefer to place so much bitcoin in one place. It’s possible that a stock market could be responsible for that, but also that a whale might be preparing for the next Bitcoin move.
Investor sentiment is also likely to impact on the evolution of the bitcoin price, as the assumption is that Bitcoin’s price will again fall in the range of $ 7,500- $ 8,500.
Such a bias can negatively affect short-term sentiment and buying volume as investors are cautious when held in positions over $ 10,400.