Bitcoin Consolidates near $26K as Ordinals Trading Volume Surges

Bitcoin remains under the $27K umbrella on Friday as bearish pressure still hovering around the market. Bitcoin is facing a downtrend for the past few weeks but didn't manage to break through the $27K price bar. 

This is mostly due to the rising volume and interest in Bitcoin-based NFTs or Bitcoin ordinals. Bitcoin-based NFTs have risen in popularity amid the fervour surrounding the Ordinal inscription movement. The network's sales over the last 30 days solidified it as the second-largest in terms of sales during this time period.

While Ethereum NFT sales were $392.23 million last month, Bitcoin sales totalled $173.28 million, a 408.29% increase from the previous month. According to Cryptoslam data, the so-called Bitcoin-based "Space Pepes" collection was the most traded non-fungible tokens (NFTs) over a seven-day period, with nearly $7.3 million worth of the collection moved. Let's see how the Bitcoin price has moved afterwards.

Bitcoin Sees a Backlash from Elon Musk

Elon Musk, the one who ignited the flames of Bitcoin and Dogecoin in the 2021 bull run is now turning his back on the cryptocurrency market. In a recent interview with Wall Street Journals, Musk stated that he would not advise "anyone to buy cryptocurrency."

"I'm not advising anyone to buy crypto or bet the farm on dogecoin." He further extended - "Maybe you should, but let me advise you that would be perhaps unwise."

Musk, on the other hand, stated that dogecoin, a bitcoin-like cryptocurrency that was founded as a "joke," is still his favourite cryptocurrency since it has "the best humour" and "it has dogs."

This news somehow affected the Bitcoin price getting down almost 3% the previous day. Musk, previously was accused of manipulating the crypto market with his sarcastic Tweets. Even the 2021 Bull market was mostly driven by Musk's indulgence in the crypto market.

Bitcoin Price Analysis

Today's Bitcoin (BTC) price is $26,429.63, with a 24-hour trading volume of $13,949,595,893. This reflects a 0.73% gain in the previous 24 hours and a -1.89% decrease in the last seven days. Bitcoin has a market valuation of $512,314,007,679 and a circulating supply of 19 million BTC.

The Bitcoin price is showing a protracted lower price rejection candle on the daily time frame chart at the range support of $26000. This reversal indication shows that buyers are continuing to defend bottom support and may remain in a consolidation phase for an extended amount of time.

In any case, the short-term trend in Bitcoin price remains bearish, and hence a downside possibility appears more likely to be predicted. A daily candle that closes below $26000 will increase selling pressure and force a prolonged downturn.

The 14-day RSI is at the 40 mark which suggests that the market is moving towards an oversold region. Bearish pressure is increasing as investors are fading away from the market. 

Source: TradingView

Conclusion

In conclusion, even after two weeks of deep stabilisation, the Bitcoin price shows no signs of returning to higher ground. As a result, the sideways trend persists, limiting the BTC price spread between $27500 and $26000. Overall, the BTC is experiencing a downtrend and the market sentiment is neutral.