Pre Open US - Bitcoin 21 Aug 2023

Bitcoin experienced a decline, while other cryptocurrencies showed mixed performance on Monday following a significant sell-off towards the end of the previous week. This sell-off caused digital assets to breach crucial technical levels, potentially leading to further drops.

In the last 24 hours, the price of Bitcoin decreased by just under 1%, reaching $26,050. This stabilization occurred around the $26,000 mark after the preceding week's plummet, which had driven the primary cryptocurrency from approximately $29,000 to around $25,500.

While the market retains a position above the local lows witnessed in June, optimism prevails for the continuation of an upward trend. Nonetheless, concerns arise due to July's highs being lower than those observed in April.

The sell-off that impacted Bitcoin marked a substantial change in the cryptocurrency markets, which had been relatively stagnant until the previous week. Despite a period of subdued activity in the stock market, characterized by volatility in the Dow Jones Industrial Average and the S&P 500, Bitcoin experienced a sudden decline last week, surprising the markets and prompting traders to search for explanations.

Technically, BTC has broken the trend channel and the trend line that supported the price and also the 200MA. The next support is expected to be around 25,000. This level has functioned as a strong support and resistance level in the last four instances.