Bitcoin (BTC) price consolidated last week and remained just above the $26,000 level. Technical charts clearly show selling pressure on BTC price, and analysts seem to expect a drop to $25,000 and below.
The Current Situation in Bitcoin
According to popular crypto analyst Ali Martinez, based on the PoW Floor pricing model, BTC price could drop by 40% and go below $15,000. Historically, this drop could indicate the end of downward trends. According to Ali Martinez, since Bitcoin has a strong support at $20,900, there is no need for the BTC price to drop to $14,800.
Investors are currently experiencing low Bitcoin volatility as they await the outcome of the SEC‘s decision on the spot Bitcoin ETF in early September. Probably, there will be more clarity on where the BTC price is heading in a week.
After a significant crash and the subsequent wave of liquidation, prices entered a period of stagnation. Markets recently suffered a loss of over $1 billion. The upcoming week will be significant with various events planned that indicate a probability of increased volatility.
Bitcoin Transaction Volume at 3-Year Low
On-chain data shows that the transaction volume for Bitcoin has reached its lowest level in 3 years. According to Santiment’s data, this includes the amount of peer-to-peer payments, miner fees, exchange fees, and withdrawals.
Analysts are also giving warning signals for investing in Bitcoin at this point. Considering previous cycles, August and September have been correction periods for Bitcoin and the broader crypto market.
Mike McGlone, Bloomberg’s senior commodity strategist, explains that Bitcoin has already had a strong rally this year. Therefore, he believes that it is not very likely for the price to continue rising from now on. He thinks it would be logical to wait for SEC’s decision on the spot Bitcoin ETF applications they have received.