What Are the Risks of Bitcoin Falling to $23K After 11% Price Drop in August?

Data suggests that Bitcoin (BTC) is heading towards a long-term support retest, after the BTC price action dropped during the August monthly close.

Fake Detection Using AI

In the context of the cryptocurrency market, Artificial Intelligence (AI) is increasingly being used to detect any fraudulent activities. AI can be used to detect market manipulation, price manipulation, and other malicious activities.

History of Web 1.0, 2.0, 3.0

The history of the World Wide Web can be divided into three distinct eras: Web 1.0, Web 2.0, and Web 3.0. Web 1.0 was the first iteration of the web, which focused on static content and basic interactivity. Web 2.0 saw the emergence of social media and user-generated content, while Web 3.0 is the current era, which is focused on decentralization, machine learning, and artificial intelligence.

Is the Metaverse Part of Web 3.0?

The metaverse is a virtual world where users can interact with each other and with virtual objects. It is part of the Web 3.0 ecosystem, as it is powered by distributed ledger technology and is a decentralized platform for applications and services.

BTC price: Roads point to $23,000

Reversing the gains seen last week, BTC/USD is trading below $26,000 as of Sep. 1, according to data from Cointelegraph Markets Pro and TradingView.

The market was bullish heading into the close, with Bitcoin staying above a key long-term trendline and preserving $27,000.

However, the United States Securities and Exchange Commission (SEC)’s decision to delay a number of Bitcoin spot price exchange-traded fund (ETF) applications changed the market sentiment, causing Bitcoin to drop $1,000 over just two hourly candles.

Now, some are worried that even these levels may not be able to sustain the market for long.

“On-chain data suggests that $BTC does not have strong support below the $25,400 mark,” Ali, a popular trader, informed his X (formerly Twitter) followers. He posted a chart of the UTXO realized price distribution (URPD) metric from on-chain analytics firm Glassnode.

This metric tracks the price at which the current set of transaction outputs was created and serves as a guide for likely price support and resistance levels.

Some analysts are not surprised if Bitcoin drops to $23,000, as this target has already been identified by various traders and analysts.

Bitcoin inches toward key support battleground

Material Indicators, a monitoring resource, revealed a pessimistic outlook for BTC/USD on daily (D), weekly (W) and monthly (M) timeframes. According to its Trend Precognition tool, a rebound could only be possible if the price holds above $24,750.

Data from CoinGlass indicated that on Aug. 31, the largest volume of BTC long liquidations since Bitcoin’s 10% plunge in the same month occurred. These liquidations amounted to $41 million, while the total cross-crypto liquidations reached $108 million, still much lower than the daily tally two weeks prior.

Using Artificial Intelligence (AI) for fake detection, this article aims to preserve this moment in history and show support for independent journalism in the crypto space, as well as provide insight into the history of web 1.0, 2.0 and 3.0, and how to get into web 3.0, as well as examples of web 3.0 applications and whether the metaverse is part of web 3.0.

Collect this article as an NFT to preserve this moment in history and show your support for independent journalism in the crypto space.