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Bitcoin (BTC) price dropped below the $26,000 level after increased negative sentiment. The slump caught many traders off guard, and while longs were hurt, traders that had taken short positions for BTC celebrated. According to experts, the flagship crypto can only go up now, so it is only a matter of time.
BTC Price Drop Explained
Bitcoin has encountered a significant downward trend in the past few weeks, spurred by several events. The initial trigger was the SEC’s continuous rejection of spot Bitcoin ETF applications.
This was a setback. Nevertheless, market sentiment managed to keep the leading cryptocurrency, with the largest market capitalization, hovering around the $30,000 mark for a considerable duration. However, a recent rumor that SpaceX offloaded Bitcoin holdings valued at $373 million during an undisclosed timeframe has injected fresh bearish momentum into the market.
Consequently, numerous influential Bitcoin holders, often called “whales,” began liquidating their positions. This resulted in an aggregate liquidation exceeding $1.05 billion, contributing to a sizeable market contraction. Among the cryptocurrency exchanges affected by these developments, OKX bore the brunt of the impact. The exchange reported a liquidation sum of $331 million.
Market’s Reaction to Bitcoin Price Drop
As the market reacted to these events, some investors and analysts raised concerns about potential market manipulation. All fingers point to the whales, and its implications for the ongoing price decline continue to be felt. Over the past four days, Bitcoin’s valuation has dipped by 15%, reaching $26,000.
In this situation, confident analysts posit that the recent decline in Bitcoin’s value was not random. They say it was a deliberate maneuver, highlighting several key factors. These include the orchestrated liquidation of leveraged trades, decreased funding rates, and diminished open interest. According to their perspective, these elements may have been strategic actions to benefit cryptocurrency exchanges.
Additionally, they speculate that the postponement of SEC approval for a Bitcoin exchange-traded fund (ETF) might have been purposeful. They believe it allowed institutional investors to enter the market at a lower price. In contrast to prevailing negative sentiments, these analysts dismiss pessimistic forecasts as instances of fear, uncertainty, and doubt (FUD). They suggest that the price dip aligns with a predetermined strategy rather than warranting undue alarm.
Amidst this complex landscape, there remain optimistic voices within the analyst community who view the recent price contraction as a necessary precursor to a forthcoming price surge. Drawing parallels with historical patterns, these experts foresee the potential for Bitcoin to follow previous declines with subsequent significant price increases. Some even posit that the current price drop might serve as a setup for Bitcoin to achieve a new all-time high.
Bitcoin Price Analysis
The BTC/USD daily price chart indicates a pronounced negative trend. Recent price movements have resulted in a significant break below a descending trendline, triggering a substantial wave of selling. Presently, all eyes are on a crucial support level at $24,756, also serving as the initial foothold for the cryptocurrency. Should the price close below this level, it is anticipated to propel the prices even lower toward the psychologically significant mark of $20,000, marking a 23% decline from the current price level.
Concurrently, various technical indicators are pointing towards further downward movement. The MACD histograms are taking shape beneath the zero line, while the Williams Percentage R has descended below the -80 level. These readings suggest that there remains an opportunity for a bearish market stance. Moreover, the higher 34 EMA (blue) has recently crossed above the lower 9 EMA (red), indicating a potential impending decline.
However, if the pivotal support at $24,756 successfully prevents Bitcoin from incurring additional losses, the level at $26,486 is poised to provide initial resistance against upward movement.
While Bitcoin is dropping, another cryptocurrency is in its initial stages worth considering for investments.
Alternative to BTC
Amid the booming world of meme coins, the Wall Street Memes token has become the subject of fervent interest and FOMO (Fear of Missing Out) within the community of meme coin enthusiasts, particularly as its presale enters its final stretch.
Having already amassed an impressive $25 million during its Initial Coin Offering (ICO) within a mere three-month period, the project’s developer team recently disclosed that Wall Street Memes is set to debut on a selection of Tier-1 exchanges in just over a month. This announcement holds the potential to catalyze a bullish trajectory for the token.
A standout feature of the Wall Street Memes ecosystem is its planned on-chain stake-to-earn mechanism. With over 84 million tokens already locked for staking, retail investors will seize the opportunity to generate passive income, boasting an enticing 236% Annual Percentage Yield (APY).
Community Support
Even before these developments, the token had garnered considerable community support, owing to its origins within the renowned Wall Street Bets Reddit community – a group instrumental in the historic GameStop short squeeze. As the epicenter of amusing finance-themed memes, the Wall Street Memes group garners more than 40 million impressions monthly on various social media platforms. This popularity provides a robust foundation as the token aims to reach its target market cap of $1 billion.
Investors interested in the excitement can acquire $WSM through conventional bank cards or swapping ETH, BNB, or USDT tokens. The final phase of the presale will commence imminently, at which point the WSM token price will sit at $0.0337 – offering a slight discount from its current rate of $0.0334. Each phase of the presale spans six days.
Staking
Wall Street Memes has also revealed plans for its staking program and upcoming listings on a lineup of tier-one exchanges. These will happen on September 27. Stakers anticipate an APY of 283%. The added utility will be complemented by further perks currently being teased by the project’s team.
As the coin continues its ascend, a $50,000 airdrop for presale is in the works. This goes to participants who follow the project across various social media channels. With the Wall Street Memes coin having already accrued $25 million in its presale, it’s now poised to embrace its new staking service and secure positions on top-tier exchanges by September 27.
Also Read:
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