Pre Open US - Bitcoin 23 Aug 2023

Bitcoin and other cryptocurrencies remained relatively stable on Wednesday, following a recent market decline that saw the largest one-day drop of the year. Analysts observe technical factors supporting a bearish trend during this period of stability.

Over the past 24 hours, Bitcoin's price held above $26,000, showing stability after last week's market rout drove it from above $29,000 to around $25,500, the lowest since mid-June. This decline, the largest in 2023, ended a phase of low volatility, suggesting Bitcoin's current stagnation.

This week, Bitcoin's direction may be influenced by the stock market's response to Nvidia's earnings and updates from the Jackson Hole economic symposium. These events could impact overall risk sentiment and consequently influence cryptocurrency prices.

Technical factors unique to Bitcoin also play a role. Short-term holders face significant unrealized losses, as noted by analysts at Glassnode. Unlike long-term holders, short-term holders are sensitive to price shifts, with many buying Bitcoin above $29,000. This dynamic contributes to the current market situation.

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.