Bitcoin (BTC) tumbled toward $27,000 after Wall Street opened on Aug. 30 as the dust settled on digital asset manager Grayscale’s legal victory.
Bitcoin buyer interest remains subdued
Data from Cointelegraph Markets Pro and transaction view The Bitcoin price volatility started the day before, when Grayscale’s positive verdict against U.S. regulators sparked a 7.5 percent rally.
Bitcoin hit $28,143 on Bitstamp — its highest level in nearly two weeks — before slipping back into consolidation.
While the daily candle closed above two key moving averages, these have yet to revert to clear intraday support, and analysts were cautious on the day.
in a quick release Regarding the on-chain analysis platform CryptoQuant, the writer MAC_D pointed out that Grayscale’s move originated from the derivatives exchange.
While financing rates remain fairly neutral, there is a noticeable lack of genuine buyer interest in the spot market.
“First, it is not an extreme value in terms of the ‘funding rate’ and thus is not expected to result in a sharp price correction,” he wrote.
“However, when BTC prices rose yesterday, it was difficult to see that the spot exchange was driving the price up. The reason is that the ‘trading volume ratio (spot VS derivatives)’ showed that it was not rising but falling.”
Other data showed transaction volumes remained below levels seen during the rally earlier in 2023.
“Of course, even with small trading volumes, it is possible for prices to change significantly, as overall liquidity in the cryptocurrency market has declined,” MAC_D continued.
“However, it seems warranted to be cautious about the fact that this rally led to a sharp rebound.”
There are “many similarities” to Bitcoin’s all-time price high
Popular trader and analyst Rekt Capital is similarly conservative about the long-term outlook.
Related: GBTC Bitcoin ‘discount’ may disappear in 2024 as shares jump 17%
in his latest youtube updateBTC/USD could mimic the current all-time high in 2021, according to Rekt Capital.
While no new peaks are currently expected for BTC prices, the recent peak around $31,000 on the weekly chart and subsequent decline is reminiscent of Bitcoin’s performance into a 2022 bear market.
“We see a lot of similarities between the double top in 2021 and what we’re seeing now,” he warned.
If similarities emerge and BTC/USD produces a full fractal, then $26,000 will move from support to resistance, triggering further declines.
Rekt Capital reiterated: “Right now, we see a number of signs that are really affecting all of this.”
Earlier, Cointelegraph reported on the expected target of a BTC price bottom, with $23,000 becoming increasingly important.
Rekt Capital likewise marks $23,000 as a significant level relative to a 2022 bear market bottoming structure (an inverted head and shoulders pattern).
“This is a level where we could see prices rebounding,” he added.
This article does not contain investment advice or advice. Every investment and transaction involves risk, and readers should do their own research when making a decision.
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