The Bitcoin (BTC) price has been consolidating over the last week and so floating just above the $26,000 level. On the technical charts, the selling pressure on the BTC price is clearly visible with analysts expecting a drop to $25,000 and below.
As per the PoW Floor pricing model, the BTC price can further drop by another 40% and under $15,000 levels, reports popular crypto journalist Ali Martinez. As per historical patterns, this would mark the end of bearish trends. Not necessary that the BTC price would drop to the $14,800 level as Bitcoin has very strong support at $20,900.
#Bitcoin | In previous cycles, $BTC has reached the PoW Floor Pricing Model to mark the end of a bearish trend. This level currently sits at $14,800, with strong support looming at $20,900. pic.twitter.com/XZdZ6amgOD
— Ali (@ali_charts) August 28, 2023
Bitcoin volatility currently remains subdued as investors are awaiting the outcome of the SEC’s decision on spot Bitcoin ETF to come y early September. Probably, there could be more clarity after a week’s time as to where the BTC price is heading ahead.
After a notable collapse and a subsequent cascade of liquidations, prices have entered a period of stagnation. Just a short while ago, the markets experienced a loss of over $1 billion. This upcoming week will be significant, with various events scheduled, indicating a likelihood of increased volatility.
Bitcoin Transaction Volume At 3-Year Low
On-chain data shows that the transaction volume for Bitcoin has dropped to its 3-year lows. As per the data from Santiment, this includes the amount of peer-to-peer payments, miner fees, exchange fees, and withdrawals.
Analysts have also been flashing warning signals for investing in Bitcoin at this point. Considering previous cycles, the months of August and September have been periods of correction for Bitcoin and the broader crypto market.
Bloomberg’s senior commodity strategist Mike McGlone explains that Bitcoin has already given a strong rally this year. Thus, one cannot expect its price to continue going higher from here onwards. Let’s wait for what the SEC has to say on the spot Bitcoin ETF applications filed with them.
‘It Went Up, So Will Keep Going Up’ Risks in Bitcoin –
The lessons of high-performing, widely hyped assets show price reversion may be the greater risk once the masses jump on board. #Bitcoin at about $26,000 on Aug. 28 is slightly below the end of 2020, similar to… pic.twitter.com/3UdAbpLNLe
— Mike McGlone (@mikemcglone11) August 28, 2023
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.