40% BTC Price Drop Still Possible As Per the Bitcoin PoW Floor Pricing Model

Bhushan Akolkar
August 29, 2023
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Will These Satoshi-Era Dormant Wallets Impact Bitcoin Next Rally?

The Bitcoin (BTC) price has been consolidating over the last week and so floating just above the $26,000 level. On the technical charts, the selling pressure on the BTC price is clearly visible with analysts expecting a drop to $25,000 and below.

As per the PoW Floor pricing model, the BTC price can further drop by another 40% and under $15,000 levels, reports popular crypto journalist Ali Martinez. As per historical patterns, this would mark the end of bearish trends. Not necessary that the BTC price would drop to the $14,800 level as Bitcoin has very strong support at $20,900.

Bitcoin volatility currently remains subdued as investors are awaiting the outcome of the SEC’s decision on spot Bitcoin ETF to come y early September. Probably, there could be more clarity after a week’s time as to where the BTC price is heading ahead.

After a notable collapse and a subsequent cascade of liquidations, prices have entered a period of stagnation. Just a short while ago, the markets experienced a loss of over $1 billion. This upcoming week will be significant, with various events scheduled, indicating a likelihood of increased volatility.

Bitcoin Transaction Volume At 3-Year Low

On-chain data shows that the transaction volume for Bitcoin has dropped to its 3-year lows. As per the data from Santiment, this includes the amount of peer-to-peer payments, miner fees, exchange fees, and withdrawals.

Courtesy: Santiment

Analysts have also been flashing warning signals for investing in Bitcoin at this point. Considering previous cycles, the months of August and September have been periods of correction for Bitcoin and the broader crypto market.

Bloomberg’s senior commodity strategist Mike McGlone explains that Bitcoin has already given a strong rally this year. Thus, one cannot expect its price to continue going higher from here onwards. Let’s wait for what the SEC has to say on the spot Bitcoin ETF applications filed with them.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets. 

He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.