Bitcoin Price Prediction: BTC Stuck at $26k – How Will This Momentum Affect the Market?

Updated: 22 August 2023

Disclosure

Don’t invest unless prepared to lose all the money you invest. This is a high-risk investment, you shouldn’t expect to be protected if something goes wrong.

Join Our Telegram channel to stay up to date on breaking news coverage

Following its recent drop from $28k to under $26k, Bitcoin price managed to see a slight recovery which took it back to $26,000 per coin. However, the price remains volatile, and in the past 24 hours alone, Bitcoin dipped below $26k twice, albeit only briefly, before it bounced back up.

The coin’s 24-hour chart shows that $26k currently acts as a support, while $26.2k is the resistance holding the price from progressing.

Short-term fluctuations also appear to be getting smaller, with a minor resistance sitting at $26.1k, which reduced the price to $26.03k. At the time of writing, the price started increasing again, currently at $26,073.

However, the weekly loss is still over 11%, primarily caused by a price crash late on August 17. The weekly chart shows that Bitcoin trades sideways, reverting to unnatural stability.

Soaring US yields endanger risk asset rally

Bitcoin’s curious performance could be traced back to surging US Treasury yields, sending shudders through riskier market areas.

At this time, market participants are left to wonder how big of an effect the new situation might have on a rally positively impacting riskier assets, from stocks to Bitcoin.

Many markets have seen strong economic growth this year, leading to expectations that the US Fed might leave rates higher for a prolonged period, pushing Treasury yields this month to their highest level since 2007.

This, in turn, hurt various investment assets, with the S&P 500 losing 4% this month as the US benchmark 10-year Treasury yield went up to a 15-year high of 4.366%.

As for Bitcoin, an analyst known on X as Rekt Capital warned that Bitcoin is only one support level away from triggering a breakdown from a bearish reversal pattern.

#BTC has completed the Double Top but still no breakdown confirmation as BTC holds ~$26k support

Interestingly, seller volume has increased in recent days

That said, $BTC seller volume still not close to sell-side volume at previous price reversals#Crypto #Bitcoin https://t.co/VjZbit77SA pic.twitter.com/WhVMQc2eUP

— Rekt Capital (@rektcapital) August 20, 2023

Another analyst has pointed out that history is repeating, as Bitcoin is making similar moves seen in 2020. They warned that the situation might not be the same, as no two moments in time are identical.

The context, players, and global circumstances all have an effect and could cause the price to behave differently. However, the similarities are fascinating and may hint at what might happen next.

Bitcoin hash price reaches historic lows.

Another development that may affect Bitcoin is the drop of the Bitcoin hash price, which has plunged to all-time lows, according to data presented by Checkmate, one of the critical analysts at Glassnode.

Hashprice is at all time low

The reward per hash for miners has never been lower in $BTC and $USD denominations.

For folks obsessed with security budget fears, can you explain why the chain is still yet to be attacked?

The incentives of Proof-of-Work, work. pic.twitter.com/nwmcYyeyVJ

— _Checkɱate 🔑⚡🌋☢️🛢️ (@_Checkmatey_) August 22, 2023

The hash price reflects the reward size per hash for Bitcoin miners, meaning the amount they earn by validating transactions. The analyst noted that the reward has never dropped this low in the past, regardless of whether it is measured in BTC or USD denominations.

The hash rate is an indicator of the coin’s robustness and the growing computational power of its network.

However, recent data has shown that the BTC network’s hash rate has reached 427.72M terahashes per second, representing a 1.85% increase from yesterday, August 21. In comparison, last year, the figure was at 205.77M TH/s, indicating a surge of 108.8%.

Wall Street Memes enters final stage

Wall Street Memes (WSM), a popular new meme coin inspired by the subreddit called WallStreetBets, has seen its presale enter its final stage. The presale has already raised over $25 million, and the token WSM is currently selling for $0.0337.

This last stage of the presale will last until the end of August 2023, and in 36 days, the token will find its way to crypto exchanges. The token can be purchased with ETH, BNB, USDT, or credit or debit cards.

Smog (SMOG) - Meme Coin With Rewards

Rating