Pre Open US - Bitcoin 22 Aug 2023

Bitcoin and other cryptocurrencies stabilized on Tuesday following a recent selloff that interrupted a period of low volatility. Yet, crypto traders remain cautious about potential future turbulence.

Bitcoin's price stayed around $26,050 in the past 24 hours after plummeting to about $25,500 recently. This revisited a low point seen after last week's selloff, marking the lowest since mid-June. Analysts fear further declines, especially as Bitcoin trades below key technical levels, including the 200-day moving average.

In just three months, an anonymous Bitcoin wallet surged to become the world's third-largest holder, amassing a remarkable 118,000 BTC, worth about $3.08 billion at the current $26,100 price. This rapid accumulation sparked debates over its mysterious owner.

Experts suggest different possibilities. While some think it might be a cryptocurrency exchange performing a large transfer, others imaginatively link it to BlackRock, a major asset management firm. However, the BlackRock theory lacks solid evidence and has led to comical posts featuring actual black rocks.

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.