With Bitcoin supply stagnating at $26,000, Bitcoin is becoming increasingly static at current price levels. As the overall price trend of Bitcoin has somewhat disappeared in recent months, the incentive to buy and sell Bitcoin has also weakened.
This is reflected in the velocity of Bitcoin circulating through the network, which has now hit its lowest point since October 2020. This situation has two sides, it can be seen as a positive because many whales are holding it, or it can be seen as a negative because it is not being transferred to new investors.
A similar lack of major trading activity among large investors also suggests that the market is in “wait-and-see” mode for Bitcoin.
August as a whole is currently looking like the worst month of 2023, with the strength of Bitcoin prices still disappointing after the plunge 10 days ago, with bulls unable to regain control of the market to provide a relief rebound. September is also traditionally a poor month for Bitcoin, and with only two days left to the August close, will there be another downside surprise? Perhaps we should all remain vigilant, as there is no sign of a rebound, so we are in for something worse? I personally think so.
Where will Bitcoin go if it continues to fall? The $25,000 level is a very important watershed. Bitcoin fell to test it once in June and now it has fallen again. I personally think that this level will continue to be tested and there will be fierce competition. The Fed's interest rate hike in September and the occasional US cryptocurrency regulatory information and inflation issues will all be resistance to Bitcoin's rebound in the short term.
From the disk, we can see that 25,000 and 23,000 are the support areas at the weekly and monthly levels. Once the 25,000 US dollar position is lost, it is likely to challenge 23,000 or even 21,000. I think these areas are likely to be the low points in September, and the areas that can be periodically bottomed out may also be near this area. If this area forms a rebound trend again, then Bitcoin will have 5,000 points of upside. But it is still hard to say whether it can break through the high point in July. Because the market lacks reasons to rise now. In the short term, Bitcoin may not have a very good improvement in September or even October as a whole. Perhaps someone will mention the halving of Bitcoin in the first half of next year, and the launch of cryptocurrency ETFs in many countries can also bring positive signals. However, this is still a long way off. However, the cryptocurrency market next year will definitely be good. Choose to believe that everything will be fine. $BTC
