Bitcoin and other cryptocurrencies are facing downward pressure as digital assets continue to remain at relatively low levels. Analysts are observing signs of weakness in technical factors, indicating the possibility of further declines.
Over the past 24 hours, the price of Bitcoin has fallen by 1% to $25,750, moving further away from the $26,000 mark that has provided stability to the largest digital asset for most of the past month. Despite sporadic gains, such as a spike to $28,000 last week following a pro-crypto court ruling, prices have failed to sustain an upward trend.
According to Alex Kuptsikevich, an analyst at broker FxPro, “Bitcoin has remained stagnant at $26,000 for over two weeks. Attempts to surpass the 200-day average have encountered substantial selling pressure, affirming that the bears are firmly in control of the market. This suggests a higher risk of the consolidation ending with downward momentum, potentially reaching levels around $25,000 or even $24,000.”
Macroeconomic Catalysts Continue to Impact Cryptos
It is important to note that macroeconomic catalysts are likely to continue influencing cryptocurrencies. Similar to the Dow Jones Industrial Average and S&P 500 in the stock market, cryptos remain sensitive to the outlook for interest rates as they directly impact the demand for risk-sensitive assets.
Digital-Asset Traders Await SEC Decision on Bitcoin ETFs
Digital-asset traders are eagerly awaiting the Securities and Exchange Commission’s (SEC) decision on applications for spot Bitcoin exchange-traded funds (ETFs). These ETFs, which hold Bitcoin, are seen as a significant catalyst for the cryptocurrency market. Despite the SEC’s recent decision to delay its ruling until October, many crypto enthusiasts remain optimistic that approval is imminent. However, experts are divided on whether or not the market has already priced in this potential outcome.
If the SEC ultimately rejects the Bitcoin ETF applications, analysts predict a decline in Bitcoin’s price. According to Rania Gule, an analyst at broker XS.com, the support level of $24,995 could be breached, leading to further losses down to the critical support level of $24,000. In a worst-case scenario, Bitcoin’s price could plummet to the demand zone between $21,711 and $20,155. These predictions are supported by signals from the Relative Strength Index (RSI), which is currently showing bearish momentum.
While Bitcoin experienced minor losses, Ether, the second-largest cryptocurrency, saw a decrease of less than 1%, settling at $1,630. On the other hand, altcoins, such as Cardano and Polygon, displayed more positivity with Cardano trading above flat and Polygon recording a 3% increase. The performance of memecoins was mixed, with Dogecoin gaining 1% but Shiba Inu shedding 2%.