The world’s largest cryptocurrency Bitcoin came under severe selling pressure last week following Tesla’s liquidation of its $373 million worth of BTC holdings. As of press time, Bitcoin is trading at $26,060 with a market cap of $507 billion.
On-chain indicators and the technical setup show that the BTC price could be heading even lower as the price slips under the 200-day moving average. Popular crypto market analyst Ali Martinez explains: “Each time $BTC has broken below the 200-day SMA over the last 10 years, it often drops to touch the Realized Price. Right now, the Realized Price is around $20,350″.
Although the TD sequential presents a buy signal on the daily chart, the confirmation won’t come unless there’s a sustained close above the 200-day MA. Investors need to closely watch the $25,200-$24,800 zone. Breaching the pivotal support could further take the Bitcoin price down to $20,000.
Bitcoin Analysts Bearish
Amid the current price movement, several market analysts have turned to the Bitcoin price going ahead. Popular crypto market analyst Peter Brandt said that a close below 24,800 would damage the daily and weekly graphs.
A well-known market analyst, Rekt Capital, observed a strongly bearish technical signal in Bitcoin’s performance. Having achieved the Double Top pattern, BTC could potentially face $26,000 as a point of resistance instead of its previous role as support while moving in a downward trend.
Prominent cryptocurrency analysts like CrediBULL Crypto, Crypto Tony, and Crypto Birb anticipate the optimal buying opportunity around the $25,000 mark. CrediBULL Crypto forecasts that the Bitcoin price will likely maintain a bottom above $25,000, drawing parallels to a previous market correction that occurred before BTC reached its all-time high.
However, some analysts are hopeful of a Bitcoin price recovery as we head into September. During the first week of September, the U.S. Securities and Exchange Commission (SEC) will reportedly deliver an update regarding the spot Bitcoin ETF applications from Wisdomtree and BlackRock.