- Bitcoin price is down 23% since the summertime highs.
- A Bitcoin whale has sold 70,000 BTC and remains sidelined during the current downtrend.
- A sweep of the summertime lows at $17,622 is very plausible.
Bitcoin price hovers near the summertime lows prompting investors to question if buying a dip is worth the risk. On-chain metrics, however, show that high-cap investors remain sidelined despite Bitcoin’s discounted prices.
Bitcoin price has room to fall
Bitcoin price is down 23% since the summertime high at $25,211 in early August. Throughout September, the bears have persistently forged lower lows attempting to wipe out the June 18 swing low at $17,622. On October 3, 2022, the Bitcoin price floats 8% above the point of origin of the summertime bull run. Sidelined crypto investors are wondering if a bounce will occur or whether the summer lows are in jeopardy of an imminent breach.
Bitcoin price currently auctions at $19,213. According to Bitinfocharts.com, a scalping whale known for religiously trading 500 to 1,000 Bitcoin daily, recently sold all of their Bitcoin during July. The blockchain shows the whale liquidated 71,380 bitcoins in just four transactions on July 20. With an estimated balance of 1.5 billion dollars, the whale has been sitting sidelined ever since, abstaining from re-accumulating Bitcoin during the current downtrend.
Ironically the whale's last transaction was a purchase of just $200 in BTC one day after successfully liquidating the billion-dollar position.
Combining the technicals with the concerning on-chain metrics, the support zone near $17,622 is in jeopardy and likely to fold in the coming weeks. However, re-entrance from sidelined whales could alter the bearish scenario, and updates will be issued if and when things change.
In the following video, our analysts dive deep into Bitcoin's price action, analyzing key levels of interest in the market. -FXStreet Team
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