Since Friday, August 19, when a substantial amount of liquidations took place, affecting the larger cryptocurrency market, the price of Bitcoin (BTC) has dropped by more than 10%.
This fall in the price of the flagship digital asset has had a knock-on effect on the total capitalization of the global cryptocurrency market, currently $985 billion, falling back below the $1 trillion mark for the first time since briefly falling below the threshold on August 20, according to data obtained from CoinMarketCap.
Bitcoin price analysis
Meanwhile, the flagship digital asset is currently trading at $21,165, down 1.19% on the day and 12.47% over the past week, with a total market worth of $404 billion. Despite the falling price, Bitcoin’s long position interest continues to hover at its highest levels in the last 12 months.
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Notably, Bitcoin is back below the 200 weekly MA (around $23,100). As per crypto trading expert Rekt Capital:
“BTC is down -8% below the 200-MA right now. Historically, $BTC tends to decline -14% to -28% below the 200-MA. In fact, BTC already declined -21% below the 200-week MA a in mid-June which was very much in line with historical numbers.”
He added:
“In 2015, BTC bottomed 547 days before the Halving In 2018, BTC bottomed 517 days before the Halving (discount March 2020 crash) If Bitcoin is going to bottom 517-547 days before the upcoming April 2024 Halving… Then the bottom will occur in Q4 this year.”
For those looking for the bottom, the last crash was the heaviest capitulation for Bitcoin markets, as identified by crypto analyst Plan C. The pseudonymous trader also noted a potential bottom pattern with previous years.
Altcoin market
The second largest asset by market cap, Ethereum (ETH), is currently down 2.97% on the day and a further 17.27% in the last week with a total market cap of $192 billion, despite the upcoming Merge upgrade on the horizon.
Elsewhere, all other notable cryptocurrencies in the top 20 coins by market cap are down on the day by as much as 1%, including Cardano (ADA), Solana (SOL), Shiba Inu (SHIB), and Dogecoin (DOGE).
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