BTC price nears $26K amid warning Bitcoin sell pressure can ‘double’

Bitcoin (BTC) stayed near two-month lows at the Aug. 18 Wall Street open as markets came to terms with extreme liquidations.”Drying liquidity” expenses BTC rate essential supportData from Cointelegraph Markets Pro and TradingView showed BTC cost action tracking sideways after a single day-to-day candle generated 8% losses.The biggest cryptocurrency saw a cascade of liquidations throughout derivatives markets, with these accounting for an “outsized” majority amidst reasonably slack spot selling.”In Deribit it is most likely that a big account got wiped, considering the tremendous brief liquidation that occured together,” trading firm QCP Capital wrote in a market upgrade sent to Telegram channel customers on Aug. 18. Bitcoin liquidations composite chart. Source: QCP CapitalQCP, like others, noted that the market response to the alleged trigger– a write-down of SpaceXs $373 million BTC holdings– appeared exaggerated.”This restored the 2021 and 2022 ghosts of Elon-driven tops and bottoms, and we definitely hope the market will not revert back to those times once again,” it continued, describing previous Bitcoin sales and accompanying remarks from Elon Musk, joint CEO of SpaceX and Tesla.Total liquidations challenged those seen in the instant after-effects of the FTX exchange meltdown– the occasion that led to BTC/USD dipping to two-year lows of $15,600 in November 2022.”This feels like yet another indication of the drying liquidity markets have actually seen over the last couple of weeks,” financial commentary resource The Kobeissi Letter added in part of its own reaction.Analyst: Spot offer volume still 50% listed below 2023 highAs BTCs rate wandered slowly towards $26,000, market individuals diverged over the true nature of the situation and its future implications.Related: How low can the Bitcoin price go?For popular trader and expert Rekt Capital, the picture was bleak– a double-top development for BTC/USD in 2023, and a complete lack of assistance from pattern lines and moving averages during the breakdown.”BTC formed its Higher High at ~$31000 on inclining volume. However cost formed the second half of its Double Top on decreasing volume,” he composed in part of numerous posts on X (previously called Twitter). An accompanying chart revealed trading volume on daily timeframes, as Rekt Capital alerted that capitulation had likely not yet matched previous sell-offs.”Though there was a small breakout in seller volume on this crash … Its still nowhere near the Seller Exhaustion volume levels (green box) of previous BTC reversals (yellow circles),” he explained.”In reality, present Seller Volume would need to probably double to reach those Seller Exhaustion volume levels that prompted rate reversals in early & & late March as well as mid-June.”BTC/USD annotated chart. Source: Rekt Capital/XOthers were more optimistic, consisting of trader CryptoCon, who recognized essential two completed tasks typical to effective BTC cost rebounds throughout bull market retracements.These included relative strength index (RSI) values bouncing at the 0.382 Fibonacci retracement level.”Every cycle, the Weekly Bitcoin RSI experiences a fake out of the bull market start line, some enduring longer than others,” he discussed.”And each of them makes a review to the.382 Fibonacci retrace of the relocation. With the newest drop, both of those things are now complete.”BTC/USD annotated chart with weekly RSI. Source: CryptoCon/XRekt Capital noted that everyday RSI was now at its most “oversold” since June 2022, with just 2 episodes in Bitcoins history, both in bear markets, beating it.Looking ahead, QCP on the other hand flagged next weeks commentary from Jerome Powell, chair of the United States Federal Reserve, as the next possible source of volatility.”We believe that a lot now rests on Powells speech at Jackson Hle next week,” it concluded.Collect this post as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.Magazine: Should we prohibit ransomware payments? Its a hazardous however appealing ideaThis post does not consist of investment suggestions or recommendations. Every investment and trading move involves threat, and readers should perform their own research when deciding.

Bitcoin (BTC) remained near two-month lows at the Aug. 18 Wall Street open as markets came to terms with extreme liquidations.”Drying liquidity” expenses BTC price crucial supportData from Cointelegraph Markets Pro and TradingView revealed BTC price action tracking sideways after a single daily candle light spawned 8% losses.The largest cryptocurrency saw a cascade of liquidations throughout derivatives markets, with these accounting for an “outsized” majority amidst relatively slack area selling.”This feels like yet another sign of the drying liquidity markets have seen over the last couple of weeks,” monetary commentary resource The Kobeissi Letter included in part of its own reaction.Analyst: Spot offer volume still 50% listed below 2023 highAs BTCs cost drifted gradually toward $26,000, market participants diverged over the real nature of the circumstance and its future implications.Related: How low can the Bitcoin cost go?For popular trader and analyst Rekt Capital, the photo was bleak– a double-top development for BTC/USD in 2023, and a total lack of support from trend lines and moving averages throughout the breakdown. Source: Rekt Capital/XOthers were more optimistic, including trader CryptoCon, who determined essential two completed jobs common to successful BTC cost rebounds throughout bull market retracements.These involved relative strength index (RSI) values bouncing at the 0.382 Fibonacci retracement level.