Bitcoin ended a terrible August for bulls. During this period, BTC price performance disappointed investors. Unfortunately, analysts do not speak hopeful for BTC from now on.
Paths lead to $23,000 mark for Bitcoin price!
As you follow from Kriptokoin.com, Bitcoin reversed last week’s gains. Thus, the leading cryptocurrency fell below $ 26,000 as of September 1. Market participants were seeing reason for bullishness heading into the close as Bitcoin held a key long-term trend line and maintained $27,000. However, the US Securities and Exchange Commission’s (SEC) decision to delay a number of spot Bitcoin ETF applications has forced a rethink, with BTC losing $1,000 in just a two-hour candle.
Now observers worry that even current levels may not sustain the market for long. Popular analyst Ali Martinez said, “On-chain data shows that BTC lacks strong support below the $25,400 mark. “If BTC falls below this threshold, it will likely decline quickly to $23,340.” says. The analyst makes his prediction through a chart of the UTXO realized price distribution (URPD) metric from Glassnode.
UTXO realized price distribution (URPD) annotated chart. Source: Ali MartinezBitcoin moves towards key support battleground
With this target on the radar for various analysts, $23,000 will not be a surprise to some. On-chain tracking resource Material Indicators paints a similarly grim picture for BTC on daily (D), weekly (W), and even monthly (M) timeframes. Using signals from Trend Precognition, one of its proprietary trading tools, Material Indicators say $24,750 must hold for the bulls to have a chance of cementing a recovery. In this context, he makes the following statement:
The W signal will be invalid if Bitcoin price declines and stays below $25,350. But if support holds above LL at $24,750, it would be a good base to move higher from resistance and retest.
BTC 1 month chart with Trend Forecast signals. Source: Material IndicatorsMeanwhile, CoinGlass data shows that August 31 led to the largest BTC long liquidation volume since Bitcoin’s 10% drop at the beginning of the month. These amounted to $41 million. Additionally, the total across the crypto market was $108 million. That’s still well below the daily tally from two weeks ago.
Crypto liquidation chart. Source: CoinGlassGrayscale hype for BTC is disappearing!
Bitcoin bears took full advantage of the downward volatility in the BTC and crypto markets in August. Overall, BTC lost 11.2% in August. As for September, there is little optimism about a recovery among market observers. In this vein, popular analyst Rekt Capital identifies Bitcoin’s potential next steps. The analyst states that the BTC price could not maintain the gains it made thanks to the Grayscale hype. Moreover, it emphasizes that selling pressure is strong. It also says that the weekly relative strength index (RSI) values are falling towards a significant ascending trend line. In this context, Rekt Capital emphasizes the following points:
We have seen this trend line hold for a very long time, for several months (more than a year actually). Now, if we lose this RSI trend line, we will likely see further declines in BTC.
BTC annotated chart with RSI data. Source: Rekt CapitalTargets for a new decline lie at various points on the way to $23,000, which is currently a favorite among analysts. Citing data from CoinGlass, the analyst adds that “a rate of 7% to 13% should be reasonable” for Bitcoin based on historical norms for September losses. Rekt Capital notes that if a relief rally occurs, it will likely rise to $27,200. This level is a line in the sand that used to act as support.
BTC monthly returns chart. Source: CoinGlass
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