Bitcoin,has experienced a sharp drop in price in the last week of August 2023 and the first week of September 2023.
The price of bitcoin fell from around $29,000 on August 24 to below $26,000 on September 3, losing more than 10% of its value in less than two weeks. Other cryptocurrencies, such as Ethereum, also followed suit and saw significant losses.
In this article we will find out bitcoin next target and what caused the price to fall and future outlook of btc.
What Caused the Bitcoin Price Crash?
There are several factors that may have contributed to the bitcoin price crash, including:
- Derivatives liquidation: As the price of bitcoin declined gradually over the past month, many traders who had taken leveraged positions in futures and options contracts were forced to close their positions or face margin calls. This created a negative feedback loop, where more selling pressure pushed the price lower, triggering more liquidations and more selling. According to data, more than $3 billion worth of crypto futures contracts were liquidated in the last week of August.
- SpaceX’s bitcoin sale: On September 2, the Wall Street Journal reported that SpaceX, a private space exploration company founded by Tesla’s CEO Elon Musk, had sold some of its bitcoin holdings in the first quarter of 2023. The report also said that SpaceX had written down the value of its bitcoin holdings due to the market volatility.
What’s Next for Bitcoin?
The current price of btc is $25,900 with a 24h trading volume of $8bn. Let’s take a look athe chart for identifying the next move:
According to the chart, The impulsive waves have concluded, and now the bulls must diligently defend the horizontal support to sustain their bullish momentum ????.
This is a good level for accumulation until the support is not breached.
Despite the recent price crash, there are many positives regarding bitcoin and it’s future outlook. Some of the factors are:
- Bitcoin is still up year-to-date: Even after the crash, bitcoin is still trading above its price at the beginning of 2023, when it was around $20,000. Bitcoin has also outperformed many traditional assets, such as stocks and bonds, in terms of returns this year.
- Bitcoin adoption is growing: More institutions and individuals are embracing bitcoin as a form of payment, investment, or hedge against inflation.
- Bitcoin fundamentals are strong: The underlying network and technology of bitcoin are robust and resilient. The network difficulty, which adjusts the mining difficulty according to the hash rate, has also increased by more than 30% since July. These indicators suggest that miners are confident and committed to supporting the network.
Conclusion
Bitcoin price crash is not uncommon in the volatile and unpredictable crypto market. There are many factors that can influence the supply and demand of cryptocurrencies, such as market sentiment, regulatory developments, technical innovations, and unexpected events. However, bitcoin has also proven its resilience and adaptability over time. It has survived many challenges and crises since its inception in 2009.
Therefore, investors who believe in its long-term value proposition may see the price crash as an opportunity to buy more at a lower price or hold on to their existing holdings. As always, investors should do their own research and due diligence before making any investment decisions.
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