Bitcoin Sees a Recovery from $26K Ahead of US FED Speech

Pathik Bhattacharya
Pathik Bhattacharya Published on August 25, 2023 03:07 AM

Bitcoin fell to over $26,000 on Friday morning but later climbed above the current support giving up much of the previous day's gains.

Bitcoin Sees a Recovery from $26K Ahead of US FED Speech
Source: Unsplash

Bitcoin's journey takes a dip, with the cryptocurrency relinquishing its gains and dropping to around the $26,000 mark. This retreat seems to reflect the prevailing sentiment of caution sweeping across the market.

All eyes are on U.S. Federal Reserve Chair Jerome Powell's speech at Jackson Hole, with investors eagerly seeking hints about the trajectory of interest rates. The ripples of Powell's words are likely to extend to the crypto domain, shaping Bitcoin's next moves.

Ether too mirrors this cautious sentiment, edging closer to the $1,600 support level. In the midst of this uncertainty, Solana takes a hit after a day of gains, affecting the broader crypto landscape.

Bitcoin Facing Scrutiny

The move from a daily high of $26,688.48 to the early Friday low of $25,914.93 accentuates the asset's volatility. As the regulatory landscape tightens in the U.S., caution paints the market's canvas.

Lawsuits from the U.S. Securities and Exchange Commission (SEC) against prominent digital asset firms cast shadows, fostering an environment of uncertainty. Luxembourg-based Bitstamp's decision to cease Ethereum staking services for U.S. customers adds to this regulatory complexity.

Blockchain intelligence firm Santiment's data reveals Bitcoin whales shifting substantial amounts to their wallets, a sign of declining market sentiment. This movement, combined with negative sentiment, potentially adds to market pressure.

Greta Yuan, head of research at VDX, reminds investors that the bear market isn't yet in the rearview mirror. Trading volume remains weak, suggesting that Bitcoin's price might linger between $25,000 and $27,000 for a while. The market's pulse, influenced by regulatory winds and investor sentiment, will continue to sway Bitcoin's dance.

Analysts Bullish on Bitcoin's Price as Halving Approaches

Turning to historical cycles, Pantera Capital paints a vivid picture of Bitcoin's journey. The subtle yet pivotal indicator of active supply last seen less than a month ago hitting an 8-year low ushers in questions about the shifting dynamics of trading activity.

The upcoming four-year halving cycle could hold the answers. Pantera's "Blockchain Letter" speaks boldly about Bitcoin's price potential, firmly believing in its trajectory toward $150,000.

“The next halving is expected to occur on April 20, 2024. Since most bitcoins are now in circulation, each halving will be almost exactly half as big a reduction in new supply. If history were to repeat itself, the next halving would see bitcoin rising to $35k before the halving and $148k after.” - Pantera Stated.

This projection draws from Bitcoin's halving cycles, where historical patterns suggest bottoms and tops in close proximity to each block subsidy halving. A cycle that historically witnesses ascents before halvings and an explosion in value afterward.

Bitcoin Price Analysis

As per CoinStats, Bitcoin is currently trading at $26,137.65, down -0.96% in the previous 24 hours, with a live market cap of $509 billion. It has a circulating supply volume of 21,000,000 BTC coins and a maximum supply volume of 21,000,000, with a 24-hour trading volume of $29B.

bitcoin price chart daily

Source: CoinStats

On Thursday, Bitcoin recovered from a support level of $25,500. The BTC/USD is currently signalling a bullish correction, which might take it towards the $27,400 mark.

On the plus side, a bullish breakout above $27,400 might send BTC towards $28,650. Furthermore, BTC has the potential to reach $30,300.

A bearish breakout of the $25,450 level, on the other hand, might lead to a drop to $24,100. Additionally, the Relative Strength Index (RSI) is below the oversold zone from the past 1 week and still is on the 25 mark which shows that bears are dominating the market at the current moment.

bitcoin price chart

Source: TradingView


In the intricate world of cryptocurrencies, Bitcoin's narrative emerges as a blend of regulatory shifts, investor sentiment, and historical patterns. Numbers and indicators intertwine with market forces and external influences, forming a tapestry that unfolds unpredictably.

As the journey continues, from cautious retreats to bold projections, Bitcoin's saga carries the weight of its past, the currents of its present, and the potential of its future. In this symphony of numbers, sentiments, and cycles, the true path that Bitcoin will tread remains a captivating mystery waiting to be unveiled.

Price PredictionAltcoin News


 Grayscale Files SEC Request to Transform Ethereum Trust into a Spot ETF
Grayscale Files SEC Request to Transform Ethereum Trust into a Spot ETF
October 02, 2023 11:03 PM