Bitcoin’s Price Drops and Potential for Further Decline
The recent liquidation of Tesla’s BTC holdings has put significant selling pressure on Bitcoin, causing its price to plummet. It is currently trading at $26,060, but on-chain indicators and technical analysis suggest that it could continue to drop.
Key Points:
- Breaking below the 200-day moving average often leads to a drop in price to touch the Realized Price, which is currently around $20,350.
- The TD sequential presents a buy signal on the daily chart, but confirmation requires a sustained close above the 200-day MA.
- The $25,200-$24,800 zone is a crucial support level to watch, breaching which could push the price down to $20,000.
- Market analysts like Peter Brandt and Rekt Capital are bearish on Bitcoin’s price, with Brandt stating that a close below $24,800 would be damaging.
- Prominent analysts anticipate an optimal buying opportunity around $25,000, with CrediBULL Crypto suggesting that Bitcoin will likely maintain a bottom above this level.
Potential for Bitcoin Price Recovery in September
The upcoming update from the U.S. Securities and Exchange Commission (SEC) regarding spot Bitcoin ETF applications could potentially bring positive news for Bitcoin’s price. Some analysts are hopeful for a recovery as we enter September.
Hot Take:
While the short-term outlook for Bitcoin appears bearish, there may be a buying opportunity around $25,000. However, the future price movement will likely depend on external factors such as the SEC’s decision on Bitcoin ETF applications.
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