Bitcoin Price Analysis: BTC Drops Below $116,000 After Failing To Crack Resistance
Bitcoin (BTC) experienced a sharp decline on Friday after failing to surpass the resistance level around the $118,000 mark. The decline suggests bears are unlikely to give up their positions easily.
If the flagship cryptocurrency can break above $120,000, it could set the stage for new all-time highs. BTC dropped over 1% on Friday and is marginally up during the ongoing session.
BitTreasury Adds To Bitcoin Holdings
BitTreasury, a firm backed by Winklevoss Capital, has announced the purchase of 111 BTC, taking its total holdings to 1,111 BTC. The latest purchase makes BitTreasury the 43rd largest corporate holder of BTC. The latest purchase comes amid growing competition between Bitcoin treasury firms, as more companies add BTC to their balance sheet in anticipation of long-term profits. The latest purchase indicates continuing confidence in Bitcoin’s role and capability as a reserve asset.
Bitcoin Could Get Boring Thanks To Institutional Interest
Strategy executive chairman Michael Saylor believes that Bitcoin could become less exciting as institutional interest in the asset grows. According to Saylor, the asset’s appeal to institutional investors could come at the cost of the thrill and volatility that attracts retail investors. Saylor stated during a podcast,
“You want the volatility to decrease so the mega institutions feel comfortable entering the space and size. The conundrum is, well, if the mega institutions are going to enter, if the volatility decreases, it is going to be boring for a while, and because it’s boring for a while, people’s adrenaline rush is going to drop. It’s like they had this big high and now the adrenaline is wearing off and they’re a little bearish.”
Saylor stated that this is a natural part of Bitcoin’s life cycle and that volatility coming out of the asset is a good thing. Saylor’s comments come as investors question why BTC’s price has stalled after surging to a new high on August 14. Investors speculated that markets had already priced in the September 17 rate cut. However, further rate cuts later this year could push Bitcoin to new all-time highs.
FTX To Unlock Third Tranche For September Disbursement
The FTX Recovery Trust, the entity tasked with overseeing the distribution of funds from the crypto exchange to customers, has announced plans to unlock a $1.6 billion tranche for distribution in September. According to the announcement, the funds will be distributed on September 30, and creditors will receive the funds in their accounts within three business days. The distribution also includes a 6% payout for Dotcom Customer Claims, 40% distribution for US Customer Entitlement Claims, and a 24% distribution for General Unsecured Claims and Digital Asset Loan Claims.
Lastly, convenience claims will receive a 120% reimbursement as part of the payout.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is struggling to gain momentum despite the Federal Reserve’s announcement of a rate cut. The flagship cryptocurrency reached an intraday high of $117,998 on Thursday before settling at $117,117. Selling pressure returned on Friday as the price fell 1.22% and settled at $115,690. The current session sees BTC marginally up, trading around $115,860.
Markets remain bullish on BTC, with Caleb Franzen, creator of financial research resource Cubic Analytics, stating,
“It’s almost like good things have happened since Bitcoin broke above its anchored volume-weighted average price from the ATHs.”
However, trading resource Material Indicators warned that liquidity was building around the price, which could result in volatile moves. The analysis added,
“While I feel like the macro is solidly bullish and the top isn't in yet, this currently feels more like a short-term exit pump than accumulation. Time will tell.”
BTC started the previous weekend in positive territory, rising 0.49% despite selling pressure and settling at $116,106. However, price action turned bearish over the weekend as the flagship cryptocurrency registered a marginal drop on Saturday, falling 0.56% on Sunday and settling at $115,314. The price rallied to an intraday high of $116,802 on Monday but lost momentum after reaching this level, ultimately settling at $115,381. Bullish sentiment intensified on Tuesday as BTC rallied, rising 1.25% to $116,832. The price fell to an intraday low of $114,724 on Wednesday. However, it rebounded from this level to reclaim $116,000 and settle at $116,484, ultimately dropping 0.30%.
Source: TradingView
Despite the selling pressure, BTC recovered on Thursday, reaching an intraday high of $117,998 before settling at $117,117, ultimately rising 0.54%. Selling pressure returned on Friday as the price fell 1.22% and settled at $115,690. The current session sees BTC marginally up, trading around $115,936.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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