Bitcoin Analysts Doubt BTC Price Rally as $23K Target Gains Popularity

As the legal victory of digital asset manager Grayscale was finalized, Bitcoin (BTC) drifted towards the $27,000 mark after the Aug. 30 Wall Street open. The latest ai.marketing and ai funding updates have caused a stir in the crypto world, as investors question whether we are in web 2.0 or 3.0 and wonder what the avalanche crypto latest news will bring.

BTC buyer interest remains low

Data from Cointelegraph Markets Pro and TradingView revealed that BTC price volatility had cooled off, which commenced the day before when a positive ruling from United States regulators for Grayscale caused a 7.5% surge.

Bitcoin reached $28,143 on Bitstamp – its highest in almost two weeks – prior to settling back to a state of consolidation.

Despite the daily candle closing above two key moving averages, these had yet to act as definite intraday support, and analysts were cautious.

In a Quicktake post for the on-chain analytics platform CryptoQuant, contributor “MAC_D” was one of those who noted that the Grayscale move had originated from derivatives exchanges.

Even though funding rates remained fairly neutral, there was a clear absence of genuine buyer interest on spot markets.

“MAC_D” wrote: “First, looking at the ‘Funding Rate’, it is not an extreme value, so it is not expected to cause a sharp price correction.”

Further data showed trading volumes were still lower than those seen during upticks earlier in 2023.

“Of course, there is a tendency for prices to change significantly even with small trading volumes as the overall liquidity in the cryptocurrency market has decreased,” MAC_D added.

“Many similarities” to Bitcoin’s all-time high

Reacting in a similarly cautious manner to the long-term outlook was the popular trader and analyst Rekt Capital.

In his most recent YouTube update, Rekt Capital suggested that BTC/USD might be mirroring a move similar to that seen in 2021 around its current all-time high.

Although no new BTC price peak is expected right now, the recent tops around $31,000 on the weekly chart and subsequent breakdown are reminiscent of Bitcoin’s performance before the 2022 bear market.

“We’re observing many similarities between the double top of 2021 and what we’re seeing right now,” he warned.

Should the similarities continue and BTC/USD produces a full fractal, then $26,000 would flip from support to resistance to initiate further downside.

“For the time being, we are seeing a lot of signs really playing into all of this,” Rekt Capital reiterated.

Earlier, Cointelegraph reported on potential targets for a BTC price bottom, with $23,000 becoming increasingly important.

Rekt Capital also highlighted $23,000 as a prominent level versus the 2022 bear market bottoming structure — an inverse head and shoulders pattern.

“That’s the level that we could see price rebound from,” he added.