The Bitcoin Price Consolidates Above $26,000 Amidst Selling Pressure
The Bitcoin (BTC) price has been consolidating over the last week and is currently floating just above the $26,000 level. Analysts expect a drop to $25,000 and below, as visible from the selling pressure on the technical charts.
Main Breakdowns:
- According to popular crypto journalist Ali Martinez, the BTC price can drop by another 40% to under $15,000 based on the PoW Floor pricing model.
- Historical patterns suggest that reaching the PoW Floor level, currently at $14,800, could mark the end of the bearish trend.
- Bitcoin has strong support at $20,900, which may prevent a drop to the $14,800 level.
Bitcoin Volatility Subdued as Investors Await SEC Decision on Spot Bitcoin ETF
Bitcoin volatility is currently subdued as investors await the outcome of the SEC’s decision on the spot Bitcoin ETF. Clarity on the direction of the BTC price is expected after a week’s time.
Main Breakdowns:
- Recent market collapse and liquidations have led to a period of stagnation.
- The upcoming week is expected to be significant, with scheduled events indicating a likelihood of increased volatility.
Bitcoin Transaction Volume Hits 3-Year Low
On-chain data shows that the transaction volume for Bitcoin has dropped to its 3-year lows. This includes peer-to-peer payments, miner fees, exchange fees, and withdrawals.
Main Breakdowns:
- Analysts have been warning against investing in Bitcoin at this point, as previous cycles have seen correction periods in August and September.
- Bloomberg’s senior commodity strategist, Mike McGlone, believes that Bitcoin has already had a strong rally this year and may not continue going higher.
Hot Take:
The Bitcoin price is currently facing selling pressure and consolidation, with expectations of a drop to $25,000 and below. However, historical patterns and strong support at $20,900 suggest that this could mark the end of the bearish trend. Investors are awaiting the SEC’s decision on the spot Bitcoin ETF, which could bring more clarity to the direction of the BTC price. Additionally, Bitcoin’s transaction volume has reached its 3-year lows, indicating caution for investors. With upcoming events and potential increased volatility, it remains to be seen how Bitcoin will perform in the coming weeks.
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