BTC Price Plunges Below $26000

Bitcoin (BTC) price has been witnessing a strong decline after it broke the major psychological level of $30,000. The cryptocurrency price was stuck in a narrow consolidation zone ranging between $29000 and $29780. On 16 August, the price broke the support level of $29000 and experienced a drastic fall.

BTC price fell and formed support at $26000 and commenced a bullish rally for retesting the $27000 level but the move was halted at $27750. The price faced strong rejection above $27500 which induced a bearish sentiment in the market.

On 31 August, the price shattered the support level of $26000 and formed a minor support near the $25,800 level. The current market structure shows that the BTC price is trying to retest $26000 and continue its downfall.

If the current candle can break the high of the previous candle and close above $26000, it might re-enter the previous zone and retest $27750. On the other hand, if the candle can break the low of the previous candle, it might head toward the support level of $25000.

Negative Sentiment Before Halving Event

Benjamin Cowen, a prominent analyst, observed and stated that the BTC price tends to exhibit negative dynamics leading up to the halving event. With the next BTC halving scheduled for April 26, 2024, investors are left pondering the implications of these historical trends.

On September 3, the number of wallets holding Bitcoin reached a new all-time high of 48.24 Million. This historic achievement underscores the growing adoption and widespread interest in BTC as a decentralized asset.

The daily active addresses have surged 23.8% since the start of 2023, reaching 575,884. The daily transactions have also witnessed a hike of 35.3% in the last 90 days, reaching 625,527. However, the total value locked has plunged 8.7% in the last 90 days, amounting to $154.4 Million.

Will the BTC Price Drop Further?

The cryptocurrency price has melted below 20, 50, 100, and 200-day exponential moving averages, suggesting bearish momentum. Chaikin money flow (CMF) score is 0.00 implying neither weakness nor strength in the market. CMF hovered below the 0 mark since 31 August 2023.

The relative strength index has dropped below the 40 mark and trades at 37.66, nearing the oversold zone, indicating bearish momentum in the price. The Bollinger bands have started to contract indicating a decrease in volatility.

The long short ratio of Bitcoin is 1.08 with 52.07% longs and 47.93% shorts indicating the higher position of buyers in the last 24 hours.

Conclusion

Bitcoin has faced backlash due to environmental impact as the energy-intensive process of mining is unsustainable and contributes to carbon emissions. The market structure and price action of Bitcoin are bearish and bulls need to push the price above $26000.

Technical Levels

Major support: $25000 and $24200
Major resistance: $27750 and $29000

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing