BTC Price Not Staying Down Much Longer, Climbs Alongside Stocks

John Isige
August 24, 2023
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights 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.
BTC price recovers to $26,800

BTC price, up 1.7% on Thursday to $26,438, is attempting to recoup the losses from last week’s deleveraging event. The most prominent crypto plunged to $25,000 after an extended low volatility period marked by support at $29,000 and resistance at $30,000.

According to Dan Morehead, the founder of Pantera Capital, a digital asset investment firm, the market “has seen enough.” In a written statement, he opined that “there’s just so long markets can be down.”

Bitcoin’s performance this summer has been noticeably dismal compared to other similar periods in the past. It “experienced the longest period of negative year-over-year returns in its history, lasting 15 months.”

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BTC Price Bullish Comeback

As reported previously, BTC bulls put up a strong defense at the $25,000 support/resistance, holding off a potential decline to $20,000. This bullish outlook has seen Bitcoin reclaim resistance at $26,000 and climb to $26,800.

Following the massive slump to $25,000, the Relative Strength Index (RSI) became extremely oversold, and this could be the catalyst as buyers move to seek fresh exposure to BTC.

The largest crypto could also be mirroring gains in the United States equity market, with the S&P 500 and Nasdaq Composite climbing by 1% at the close of trading on Wednesday. Wall Street gains came after the release of S&P Global’s flash US Composite PMI Index used to gauge economic activity in manufacturing and service industries.

The data suggested that economic expansion in August was on the brink of a pause. Investors harbored optimism that a deceleration in consumer expenditure might prompt the US Federal Reserve to suspend their pattern of rate hikes—promising news for the cryptocurrency market, as reflected by today’s price surges.

According to the derivatives market tracking platform Coinglass, Bitcoin saw $37.7 million in total liquidations on Wednesday. This was inclusive of $9.64 million of liquidated long positions. It also marked the first time since Sunday that liquidations of BTC shorts dwarfed liquidated long positions. Market participants perceive this as a signal that sentiment is improving.

Bitcoin liquidations
Bitcoin liquidations | Coinglass
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BTC Price Recovers, But There’s A Catch

Bitcoin is in the process of completing its second consecutive bullish candle on the daily chart. If the imminent seller congestion at $26,800 weakens and gives way, the next stopover would be $28,000 ahead of the anticipated climb to $30,000.

BTC price recovers to $26,800
BTC/USD daily price chart | Tradingview

Traders seeking exposure to Bitcoin longs and are conservative may want to wait until the Moving Average Convergence (MACD) indicator flashes a buy signal. This call to buy BTC would be of importance, considering the last time there was a buy signal on the daily chart was around mid-June.

The Relative Strength Index (RSI) would make its bullish case as it rebounds from the oversold region below 30 into the neutral area and finally into the overbought territory above $70.

With September approaching and the Federal Reserve expected to release its decision on economic policy, traders should proceed with caution. The previous FOMC minutes saw members calling for more rate hikes to mitigate inflation in the US. Such rate increases are likely to dampen risk asset markets like Bitcoin and crypto, thus stretching the recovery period.

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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.
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.

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
John is a seasoned crypto expert, renowned for his in-depth analysis and accurate price predictions in the digital asset market. As the Price Prediction Editor for Market Content at CoinGape Media, he is dedicated to delivering valuable insights on price trends and market forecasts. With his extensive experience in the crypto sphere, John has honed his skills in understanding on-chain data analytics, Non-Fungible Tokens (NFTs), Decentralized Finance (DeFi), Centralized Finance (CeFi), and the dynamic metaverse landscape. Through his steadfast reporting, John keeps his audience informed and equipped to navigate the ever-changing crypto market.
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.