{"id":138787,"date":"2023-09-02T03:03:18","date_gmt":"2023-09-01T21:33:18","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=138787"},"modified":"2023-09-02T03:03:18","modified_gmt":"2023-09-01T21:33:18","slug":"btc-price-leaves-a-bloody-mess-tests-25k-support-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/btc-price-leaves-a-bloody-mess-tests-25k-support-crypto-news\/","title":{"rendered":"BTC Price Leaves A Bloody Mess, Tests $25k Support – Crypto News"},"content":{"rendered":"

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Bitcoin price continued with the sell-off during the Asian business hours on Friday, losing nearly 8% in 24 hours to $26,362. The most prominent crypto has broken out of the range channel between $29,000 and $30,000 and tested levels slightly above $25,000. In the process of this decline, BTC price might validate a double-top pattern and lead to sub-$20,000 losses before another substantive rebound.<\/p>\n

BTC Price Signals More Losses<\/h2>\n

Bitcoin broke out of its ranging channel, only to trigger a sell-off to levels seen last in June. Indicators both micro and on-chain hint at a continued slump in prices with\u00a0BTC price likely to drop<\/a>\u00a0to or below $20,000.<\/p>\n

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Crypto analytics platform CryptoQuant in their latest BTC market outlook said that the open interest in the futures market \u201cwas showing the build-up of short positions since at least mid-July.\u201d In other words, the open interest was growing even as prices dipped from $32,000.<\/p>\n

\"BTC<\/a>
Bitcoin open interest | CryptoQuant<\/figcaption><\/figure>\n

The\u00a0Federal Reserve\u2019s hawkish approach to inflation<\/a>\u00a0caused a significant decrease in demand for Bitcoin in the US. According to CryptoQuant \u201cthe sell-off was preceded by a period of low demand\u201d resulting in a negative Coinbase premium.<\/p>\n

\"Bitcoin\"Bitcoin<\/a>
Bitcoin Coinbase Premium Index | CryptoQuant<\/figcaption><\/figure>\n

On-chain data also revealed that large holders of BTC doubled down on their \u201cspending activity before and during the sell-off. The failure of Bitcoin to break resistance at $30,000 and sustain an uptrend, saw many withdraw their active attention. Although whale spending increased, it was not significant to turn around the market.<\/p>\n

<\/p>\n

\"Bitcoin\"Bitcoin<\/a>
Bitcoin Spent Output Value Bands | CryptoQuan<\/figcaption><\/figure>\n

Long-term holders of BTC could decide to keep their positions intact, considering the Spent Output Value Bands show that increased whale spending has historically preceded price surges.<\/p>\n

Bitcoin Sentiment In the Negative<\/h2>\n

<\/p>\n

The current sentiment in Bitcoin markets remains negative with losses likely to extend below $25,000 during the weekend. Traders would be more interested in shorting BTC as opposed to betting on an immediate recovery.<\/p>\n

Adding credibility to the negative funding rate is the Moving Average Convergence Divergence (MACD) indicator, which reconfirmed the sell signal. This could have further exacerbated the situation, which\u00a0@Onchained, a crypto analyst<\/a>\u00a0opined on Thursday that \u201cthe drop from $29.5k to $28.3k in BTC\u2019s price brought the price closer to the realized price of short-term holders, considered a macro support.\u201d<\/p>\n

BTC price had recovered to trade at $26,200 on Friday ahead of the European session. Investors would be watching the support at $25,000 keenly because if broken, they can prepare for extended losses to sub-$20,000.<\/p>\n

\"Bitcoin\"Bitcoin<\/a>
BTC\/USD daily chart | Tradingview<\/figcaption><\/figure>\n

Price action below $25,000 would validate a double-top pattern, discussed in the previous\u00a0BTC price analysis<\/a>.<\/p>\n

However, a rebound cannot be ruled out just yet, with some renowned traders like\u00a0@DrProfitCrypto<\/a> saying a recovery could begin in the range of $23.5k \u2013 $24k. Long positions entered in this region would target profit as Bitcoin recovers between $30,000 and $31,000.<\/p>\n

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John is a renowned crypto analyst and journalist, providing expert insights into both broad and focused aspects of the digital asset market. As a steadfast reporter, he keeps his audience updated with the latest news in the crypto sphere, delving into topics such as price trends, on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the ever-evolving metaverse. <\/p>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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Bitcoin price continued with the sell-off during the Asian business hours on Friday, losing nearly 8% in 24 hours to $26,362. The most prominent crypto has broken out of the range channel between $29,000 and $30,000 and tested levels slightly above $25,000. In the process of this decline, BTC price might validate a double-top pattern […]<\/p>\n","protected":false},"author":2,"featured_media":138788,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[230,225,221,227,226,228,229,60,223,224,222],"class_list":["post-138787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency","tag-brave","tag-coinbase","tag-crypto","tag-decentralised","tag-decentralized","tag-decentralized-exchange","tag-erc-20","tag-featured","tag-meme-coin","tag-robinhood","tag-solana"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=138787"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138787\/revisions"}],"predecessor-version":[{"id":147960,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/138787\/revisions\/147960"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/138788"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=138787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=138787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=138787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}