Bitcoin Price is Hovering Above $26K Amid Broad Based Selloff

Bitcoin Price Is Hovering Above $26K amid Broad-based Selloff

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by Benjamin Godfrey · 3 min read
Bitcoin Price Is Hovering Above $26K amid Broad-based Selloff
Photo: Depositphotos

The latest data from CoinMarketCap has indicated an unsettling calm in BTC/USD trading over the weekend, with the market experiencing an 11% decline in a span of just seven days.

Bitcoin (BTC) remains perched above the $26,000 mark, creating an air of uncertainty in the crypto market which has been recording a broad-based selloff in the past week. BTC’s price fell below $26,000 on Friday afternoon, following a brief rise above $27,000 that served to mitigate some of the steep losses seen earlier in the past week.

Analysts Remain Cautions on Bitcoin’s Price

Market observers, still shaken by the recent price drop, remained cautious about the future trajectory of Bitcoin’s price. Keith Alan, the co-founder of Material Indicators, a monitoring resource outfit, maintained a relatively conservative outlook amidst the uncertainty.

Alan expressed his thoughts on the X platform, predicting that Bitcoin’s price will eventually fall below $25,000 and retest support near the 2017 Bull Market Top, which was just under $20,000. However, Alan did not foresee a linear path to this outcome, explaining:

“I’m looking for a retest of $25,000 support to potentially create a double bottom and lay the groundwork for another upward rally. If this setup comes to fruition, a realistic range of $28,000 to $29,000 could be achieved.”

Alan also mentioned that if and when the retest of the $25,000 level occurs, his focus would then shift to the possibility of a series of lower lows.

Many shared the sentiment that if Bitcoin fails to find support at $25,000, then the $20,000 range would once again become a focal point for market participants. A well-known pseudonymous trader Skew commented on the potential scenario, noting:

“A break below $25,300 might signal a move towards $24,000 – $23,000, which could initiate a stronger buyback response. Alternatively, continued downward momentum could lead to a further drop to $20,000. In the most extreme case, Bitcoin might even dip below $20,000, presenting an opportunity for swing trading.”

Despite the prevalent pessimism, Skew predicted a short-term rally in intraday Bitcoin price movement around the weekly close, perhaps sending the price toward $28,500 if purchasing pressure becomes more pronounced.

Grayscale vs SEC Case Tempers Bitcoin’s Optimistic Outlook

The crypto market’s landscape remains uncertain and volatile, with traders and investors grappling with the ramifications of the recent price decline. Optimistic expectations have been tempered by the absence of positive developments stemming from the Grayscale vs the US Securities and Exchange Commission (SEC) court battle, which had the potential to influence Bitcoin’s price trajectory.

The legal tussle revolves around Grayscale’s desire to convert its $12 billion GBTC Bitcoin Trust into a spot Bitcoin Exchange-Traded Fund (ETF), a move that could significantly enhance its attractiveness to investors. Despite the attention, the regulator had previously rejected Grayscale’s application, prompting the investment manager to take legal action in an attempt to overturn the decision.

As Bitcoin’s price continues to experience fluctuations and market participants wait for clarity on the Grayscale vs SEC case, the broader crypto community remains vigilant, well aware of the potential implications of such legal battles on the market’s future.

Bitcoin News, Cryptocurrency News, Market News, News
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