Our weekly feature. Our expert analyzed the market situation and told how it may change in the short term for BTC
The past week was packed with drama and exciting events for investors and market participants.
Key moments of the past week:
Bitcoin posted one of the largest weekly declines in 2023.
The price broke through important support levels of $28,500 and $27,700.
GSR, a major market maker, saw several executives leave the company, including its CFO.
There was a massive liquidation of long positions worth $855 million, on bitcoin - $386 million.
Pressure was exerted by negative macro factors and a bearish phase on cycles.
By the end of the week, BTC had fallen below $26k, losing 11.6% over the past seven days.
At the beginning of the second half of August, bitcoin showed one of the worst weekly declines in 2023 amid unfavorable external factors.
On Monday, the price consolidated above the $29,000 mark after a recent slump. On Tuesday, BTC declined to $28,730 amid the fall of stock indices in the United States and the strengthening of the dollar. A negative impact on the crypto market could have been caused by the news that the company GSR. And which is one of the oldest market makers in the crypto market, several executives, including its CFO, left the company.
The decisive blow to investors followed on Wednesday and Thursday, when Bitcoin broke through important support levels of $28,500 and $27,700. Massive forced liquidations of $855 million in margin positions intensified the collapse.
Over Thursday, BTC collapsed by almost 13%, dropping to $25,166. The fall in quotes was reinforced by the court decision in the SEC case against Ripple, risk aversion in other markets. As well as the ongoing bearish phase on cyclical analysis, which is due to end in early September. Several factors coincided.
On Friday, the situation stabilized somewhat, but bitcoin continued its decline, falling below $26k. For the week, BTC losses amounted to more than 11%. Other crypto assets, including Ethereum, are also under pressure. Despite the news about possible SEC approval of exchange-traded funds based on ETH, the price of the coin fell by 10%.
A positive for the market could be the court's decision on Grayscale's lawsuit to convert the bitcoin trust into an ETF. However, the regulator rejected the company's request, and there is no court decision yet.
Anlysis and perspectives
As the trend line was broken after the breakdown of the horizontal support at $28,500, Bitcoin's position has noticeably deteriorated. The price has found support at the $24,820 - $25,150 zone. If it is also taken down as $28,500, the level of $23,300 (trend line from $15,476) will appear on the horizon.
By cyclical analysis, the scales are on the sellers' side until September 3. The lower the price falls before September, the harder it will be for buyers to return to the level of $30 th. For now, the risk of continuing the decline to $23 th. remains. Buyers are reluctant to purchase the cheapened cryptocurrency.
In general, the week demonstrated Bitcoin's serious vulnerability to negative external factors. A reversal of macroeconomic trends and favorable news are needed to improve the situation. Nevertheless, investors remain positive about bitcoin's medium-term prospects ahead of the halving. $BTC