• Some analysts are hopeful that US SEC’s update on spot Bitcoin ETFs in early September could help BTC price to recover.
• Bitcoin shows major weakness on the technical chart after slipping under the 200-day moving average.

Bitcoin (BTC) entered into a sharp correction last week following the news that SpaceX has liquidated its 4373 million worth of BTC holdings. Over the last few days, Bitcoin has been trying to find support at $26,000.

As of now, Bitcoin clearly lacks a catalyst for any further price movement to the north. However, the next two weeks could be crucial considering that the U.S. Securities and Exchange Commission (SEC) is likely to give an update regarding the spot Bitcoin ETF applications from BlackRock and Wisdomtree.

However, greater chances are that the SEC would further delay the approval to early 2024. As some of the top crypto analysts believe, the US SEC would approve several spot Bitcoin ETF applications at once in early 2024.

Thus, there’s a possibility that the BTC price could consolidate at around $26,000, before gaining momentum in either of the directions. On the technical chart, BTC continues to look weak, and with no major catalyst ahead, things could turn downhill pretty fast.

Bitcoin Price Can Drop to $20,350

Amid the recent price correction, the BTC price has tanked under the crucial support of the 200-day moving average. Popular crypto analyst Ali Martinez explains: “Each time $BTC has broken below the 200-day SMA over the last 10 years, it often drops to touch the Realized Price. Right now, the Realized Price is around $20,350″.

Additionally, on the technical chart, the TD indicator has signaled a buy on the daily chart of Bitcoin ($BTC). However, for confirmation, we need to see a consistent close above the 200-day moving average (MA).

In the meantime, it’s essential to closely monitor the range between $25,200 and $24,800. If this crucial support level is breached, it could potentially open the path for a Bitcoin ($BTC) decline down to $20,000.

Bitcoin Whales Active on the Dump

In this current Bitcoin price, there’s no support from the whale cohort and in fact, the whale addresses have been heavily dumping their BTC holdings. On-chain data provider Santiment explained that the turmoil is far from subsiding following a significant price plummet in the crypto markets, which stands as one of the most substantial declines in 2023.

A notable number of Bitcoin ($BTC) transactions exceeding $1 million are occurring, suggesting that large-scale investors are quite active during this market decline. Despite this downturn, the count of substantial wallets does not appear to be decreasing.

Although the recent developments regarding spot ETF filings had raised investor expectations, these news items only contributed to the ongoing sideways movement that began in July 2023. Consequently, the prevailing sentiment was vulnerable to disruption due to macroeconomic and broader financial market shifts, such as SpaceX’s sale of Bitcoin holdings valued at $373 million.

The decline in Bitcoin (BTC) price on August 18, 2023 coincided with substantial drops in the values of the Nasdaq Composite Index and the S&P 500 Index. As a result, a considerable portion of traders faced reduced profitability or encountered unrealized losses, as indicated by data from Glassnode.

When examining the 7-day moving average, the number of BTC addresses experienced a notable decrease, reaching a one-month low of 32,506,617 addresses.