Sep 01, 2023

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

Bitcoin risks swift $23K dive after BTC price loses 11% in August. Crypto market today and web 3.0 applications.
Bitcoin risks ‘swift’ $23K dive after BTC price loses 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.

Crypto Market Today: Ali Crypto, ACH Crypto Twitter, Web 3.0 Explained

The crypto market today is abuzz with topics such as Ali Crypto, ACH Crypto Twitter, and Web 3.0 Explained. Web 3.0 is an advanced version of the internet, integrating features such as improved security, decentralization, and data ownership. It is yet to be released, but its applications are already being discussed.

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.

Share this article