Bitcoin Price Drops as Support Level Breaks
In the past week, Bitcoin has experienced a significant price drop. On September 19, it was valued at $27.5k, which then decreased to $26.5k on September 21 and further dropped to $26k.
During the period between September 19 and 21, Bitcoin’s price remained bullish, fluctuating between $27,000 and $27,250. Although it briefly reached $27,500 on September 19, the coin mostly stayed within support and resistance levels.
However, on September 21, the support level broke and the price fell to $26.5k. The following day, it fluctuated between support at $26.5k and resistance at $26.75k. As the weekend approached, the price became stagnant.
On Sunday evening, there was a sudden spike in price to $26.75k, but it was quickly rejected and dropped to $26k the next day. However, there was a subsequent recovery to $26.4k later that day. Currently, this level is acting as resistance.
In the past 24 hours, Bitcoin’s price has been fluctuating between this resistance level and support at $26,250. At the time of writing, it is at the support level with a current price of $26,251. On a weekly chart, BTC is down by approximately 3%, but it has seen a daily increase of around 0.6%.
Bitcoin’s Future Direction
Experts suggest that Bitcoin’s price may experience another drop if it faces challenges such as rising interest rates and tighter monetary policies. Bloomberg analyst Mike McGlone believes that these factors could act as an “800-pound gorilla” for Bitcoin, leading to a decline in its appeal.
Historically, during times of economic instability, high-risk assets like Bitcoin lose their allure. Many risk-averse investors tend to sell off their holdings and withdraw. McGlone predicts that BTC may slide below $25k.
Shanghai Court Recognizes Bitcoin as Digital Currency
In an interesting development, the Shanghai No. 2 Intermediate People’s Court in China has recognized Bitcoin as a unique digital currency. This recognition is significant considering China’s ban on crypto assets. The court highlighted the rarity, monetary qualities, and global acceptance of Bitcoin as features that cannot be ignored.
Despite this recognition, China’s crypto ban remains intact, prohibiting all crypto-related activities within the mainland, including mining, trading, and using BTC for payments. However, this recognition could be a small step towards a more positive stance on cryptocurrencies in the future.
Bitcoin BSC Presale Offers Unique Opportunity
Amidst the uncertainty surrounding Bitcoin’s direction, a new BEP-20 token called “BTCBSC” has gained attention from buyers. This Binance Smart Chain-based cryptocurrency aims to replicate Bitcoin’s past success.
During its presale period, the token was priced at $0.99 per unit (originally $1). The idea behind BTCBSC is to allow buyers to experience the feeling of purchasing Bitcoin 12 years ago.
While there are no guarantees of achieving the same price levels as the original Bitcoin, BTCBSC has gained significant popularity since its emergence. The presale has already raised $5.2 million in less than three weeks and reached its soft cap of $3.96 million in around ten days.
The presale is nearing its conclusion and will be sold out once it reaches $6.06 million raised. There is only approximately $800k worth of BTCBSC left, and they are selling quickly. Participants can buy the token using BNB, USDT, or ETH.
Hot Take: Bitcoin Faces Price Drop Amidst Rising Challenges
Bitcoin’s recent price drop and struggles to maintain a bullish trend indicate potential challenges ahead. Factors such as rising interest rates and tighter monetary policies may lead to a decline in Bitcoin’s appeal. However, amidst these challenges, recognition of Bitcoin as a digital currency by the Shanghai Court in China offers a glimmer of hope for the future. Additionally, the popularity of the BTCBSC token during its presale suggests continued interest in cryptocurrencies. As Bitcoin navigates these obstacles, it will be interesting to see how it adapts and evolves.
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