In a swift turn of events, Bitcoin’s price has taken a considerable hit over the last few weeks, plunging once again below the critical $26,000 threshold in the past seven days.
- Bitcoin’s price has declined due to various obstacles, including concerns over potential interest rate increases and the state of China’s property market.
- Many investors are uncertain if Bitcoin has reached its bottom.
- Historically, Bitcoin’s bearish trends have concluded when it reached the Proof of Work (PoW) Floor Pricing Model, which currently stands at $14,800.
- A drop in Bitcoin’s price would require a prior breach of the support level at $20,900, according to cryptocurrency analyst Ali Martinez.
Bitcoin price analysis
- At press time on August 29, BTC was trading at $25,963, up 0.25% in the past 24 hours.
- Bitcoin has lost around 0.3% over the past week and more than 11% on the month.
- The cryptocurrency is still up over 56% year-to-date.
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Bitcoin could stage a ‘fake move’
- There is a possibility of a ‘fake move’ in Bitcoin’s price, where it could drop as low as $25,300.
- Market makers may be using this strategy to stimulate more short positions among retail investors and create more liquidity to the upside.
- This could lead to a short squeeze and propel Bitcoin’s prices between $27,000 and $28,300.
Hot Take
Bitcoin’s recent decline in price raises concerns among investors, with uncertainties about whether it has reached its bottom. The Proof of Work (PoW) Floor Pricing Model suggests a potential downside of more than 40%, but a breach of the support level at $20,900 would be necessary. However, there is also the possibility of a ‘fake move’ in Bitcoin’s price, which could lead to a short squeeze and higher prices in the coming days. Overall, the cryptocurrency market remains volatile, and caution should be exercised when making investment decisions.
