Bitcoin Price Plunges Following Elon Musk’s Sale of SpaceX’s BTC Holdings

8:34 am (47 days ago)

August 18, 2023

The largest cryptocurrency, Bitcoin (BTC), plummeted over 10% to $26,000 following allegations that Elon Musk’s SpaceX sold its $373 million worth of BTC. The drop in Bitcoin’s price also caused over 7% erosion in the value of the rest of the cryptocurrency market, resulting in a $70 billion wipeout in the last 24 hours.

Bitcoin’s Relative Strength Index Reaches a Significant Level

With a drop of 8.09% in the last 24 hours, Bitcoin is currently trading at $26,336, presenting a good opportunity for long-term investors to fill their bags. Popular cryptocurrency analyst Ali Martinez revealed that Bitcoin’s Relative Strength Index (RSI) reached a level of 9.43 on the 4-hour time frame. The last time BTC touched these RSI levels, it experienced a strong rebound.

Although Bitcoin is currently in a bearish trend and the possibility of further price drops is high, gradually buying during each dip can be a good opportunity to benefit from this sharp decline.

Increasing Calls for “Buy the Dip” in Bitcoin

Following a week-long downtrend in altcoins, Bitcoin experienced its own major drop, resulting in a broader market decline. On-chain data shows that the number of “buy the dip” calls in Bitcoin increased with the recent price drop. According to on-chain data provider Santiment, the number of “buy the dip” calls reached the highest level in the past four months on August 17.

Santiment reported that the increasing number of “buy the dip” calls had a positive impact on the partial recovery of the cryptocurrency market and reached the highest level since April.

Santiment data also indicates that whales were quite active during the recent drop. The significant increase in Bitcoin transactions over $1 million, despite the unresolved nature of the drop, suggests that whales actively participated in this decline. Furthermore, data provided by Santiment suggests that the number of large wallets does not seem to be decreasing, indicating that major investors are not abandoning the market despite the drop.