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Bitcoin Plunges to $26,000; More Downside Ahead?

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on August 21, 2023 | 2 min
Updated on Sep 04, 2023
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  • Bitcoin is currently in a consolidation phase, staying below the critical $26,500 level, raising concerns about potential further decline to around $25,000.
  • After recovering from the $24,800 support, Bitcoin managed to reclaim positions above $25,000 and $25,500 resistance levels.
  • A breach below this level could drive the price further down towards the $25,000 mark, potentially resulting in a bearish phase.

In a sharp downturn, Bitcoin’s value has plummeted to $26,000, raising concerns about the potential for further declines. The recent drop has sparked discussions within the cryptocurrency community, prompting questions about the factors driving this sudden decrease and whether the market could experience additional downside in the near future.

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BTC/USD Price Chart
BTC/USD Price Chart – Source: Tradingview

Bitcoin Price Prediction: Technical Outlook

As of today, the current price of Bitcoin stands at $26,030.59, accompanied by a trading volume of $9,574,077,642 over the past 24 hours. Notably, there has been a 0.21% decrease in Bitcoin’s value during this timeframe. Bitcoin retains its top position with a CoinMarketCap ranking of #1, boasting a live market capitalization of $506,651,067,127 USD. The circulating supply comprises 19,463,681 BTC coins, while the maximum supply is set at 21,000,000 BTC coins.

 

Bitcoin’s price is currently undergoing a consolidation phase, remaining below the critical $26,500 level. The prevailing trend displays bearish indications, raising concerns about the potential for an additional decline, possibly reaching the $25,000 mark. Initiating a recovery from the key support area at $24,800, Bitcoin managed to regain ground above the resistance levels at $25,000 and $25,500.

 

Notably, the cryptocurrency achieved an ascent above the 23.6% Fibonacci retracement level, derived from the downward movement spanning between the $29,180 swing high and the $24,800 low. However, the journey upwards is fraught with challenges, particularly around the $26,600 mark. The price continues to be situated below both $26,500 and the 100-hourly Simple Moving Average.

 

In addition, an observable short-term bullish trend line is forming, indicating support close to the $26,050 level on the hourly chart of the BTC/USD pair. Sustaining itself above this trend line might pave the way for a potential recovery attempt. Immediate resistance is anticipated near the $26,400 level, followed by a more substantial barrier at $26,500, aligned with the 100-hourly Simple Moving Average. An unambiguous breach beyond the 100-hourly Simple Moving Average could potentially trigger a recovery phase targeting the $27,000 resistance threshold.

 

Further along, the 50% Fibonacci retracement level, based on the descent from the $29,180 swing high to the $24,800 low, serves as a notable resistance around $27,000. A successful breach of the $27,000 resistance level could propel the price toward the significant resistance zone at $27,500. Subsequent gains might create momentum for a more substantial surge towards $28,150.

 

However, a scenario where Bitcoin is unable to surpass the $26,500 resistance may lead to continued downward movement. Immediate support lies around the $26,000 zone, closely associated with the trend line. Subsequently, the next substantial support level emerges near $25,600. A breach below the $25,600 level could potentially usher in a bearish phase, potentially pushing the price lower into negative territory. If this transpires, the price could decline further towards the $25,000 threshold.

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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