Hello everyone, on Sunday, August 20th, the king of cryptocurrencies has not yet started the expected rise. With the end of the period of shallow volatility, BTC once again proved to be among the higher-risk assets. The price lost nearly 8% within hours, and this week does not represent a good period for altcoins.
Bitcoin and Altcoins: The Current Situation
The price of BTC is currently at $26,126. What pleases investors is the fact that the support zone between $25,800 and $25,500 is still holding. Closing below this zone could have deepened the sell-offs. The decline that began with Bitcoin losing the $28,800 level was not surprising for many investors. If the support level, which has been tested multiple times, is broken below, it indicates that the market is not in a clear upward trend.
Now investors will have to hold the cumulative value above the $1 trillion threshold. After a long hiatus, the daily volume, which exceeded $70 billion, fell below $25 billion on Sunday. The lack of volume and the weakness in market risk appetite contribute to the possibility of significant consequences for potential downward movements.
What’s Happening in Cryptocurrencies?
While BTC lost 11% on a weekly basis, among the top 100 cryptocurrencies, CFX, COMP, LTC, UNI, SHIB, and EOS declined by more than 20%. RUNE, AKT, and HBAR are exceptions among the altcoins that experienced a rise. As we will explain in detail in a separate article this week, this is extremely critical. We will experience many important developments from the Jackson Hole meeting to key openings in the coming days. The high volatility in the market could continue due to news flow.
Bitcoin losing the $28,377 level triggered even larger sell-offs. At this stage, we need closures above $26,300. If the bulls are to return to the game, we need to see a rapid breakthrough of the $26,862 level. Then the price can return to an upward trend. Since June 14th, BTC has been fluctuating between $25,000 and $31,200. The bottom line was tested three days ago, and it is possible for the price to return to the mid-range at $28,000.
If we see closures below $25,000, the drop could continue to $23,500 and $20,000. Such a significant drop would require serious FUD. The expected lawsuit by the US Department of Justice or possible new moves by the SEC could serve as triggers.
