Crypto Market Risks ‘Swift’ $23K Dive After BTC Price Drops 11% in August

Data suggests that Bitcoin (BTC) is headed for a retest of its long-term support, after its price action dropped into the August monthly close.

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BTC price: Roads point to $23,000

Reversing gains seen last week, BTC/USD is back below $26,000 as of Sep. 1, data from Cointelegraph Markets Pro and TradingView shows.

Market participants had seen cause for bullishness into the close, with Bitcoin holding a key long-term trendline and preserving $27,000.

However, the United States Securities and Exchange Commission (SEC) delayed a slew of Bitcoin spot price exchange-traded fund (ETF) applications, and Bitcoin dropped $1,000 over two hourly candles.

Now, traders and analysts are concerned that even current levels may fail to hold the market up for long, as on-chain data suggests that $BTC lacks strong support below the $25,400 mark, according to Ali, a popular crypto Twitter user.

Ali shared a chart of the UTXO realized price distribution (URPD) metric from on-chain analytics firm Glassnode, which tracks the price at which the current set of transaction outputs was created and functions as a roadmap for likely price support and resistance levels.

Therefore, a breakdown to $23,000, as suggested by Ali on crypto Twitter, would not come as a surprise.

Bitcoin inches toward key support battleground

Material Indicators, a monitoring resource, revealed a worrisome outlook for BTC/USD in daily (D), weekly (W) and monthly (M) timeframes.

Using its Trend Precognition tool, Material Indicators suggested that $24,750 must hold for bulls to gain a rebound.

“If price moves and holds beneath $25,350 the W signal will be invalidated, however, if support remains above the lower limit at $24,750, it will form a solid base for rallying and testing resistance,” according to the commentary.

CoinGlass data showed Aug. 31 bringing the highest amount of BTC long liquidations since Bitcoin’s 10% decline earlier in the month, totaling $41 million. The cross-crypto total reached $108 million, which is still lower than the daily figure from two weeks ago.