Bitcoin Analysis: $BTC Struggling to Hold $26,000 As Traders Hedge Bets With These Newly Emerging Alternatives – How Low Can It Go?
The price of Bitcoin continues to fall after dropping by almost 11% on the week, dragging the price to the $26,000 level.
The market structure looks shaky as the bulls struggle to defend the $26,000 level, with some analysts believing further declines are incoming.
Interestingly, as Bitcoin continues to fall, investors are starting to hedge their bets with lesser-known projects uncorrelated to the $BTC price movement and capable of delivering high short-term returns.
Let’s look at how low Bitcoin can go and where traders are hedging in the meantime.
What you'll learn 👉
Bitcoin Struggles to Hold $26,000 – How Low Can It Go?
The price of Bitcoin is now down by a steep 11% over the week and down a further 18% from the 2023 highs set in mid-July.
The cryptocurrency had been trading inside a descending price channel since the beginning of July but smashed through the lower boundary last week in a market wipeout.
The steep decline was primarily driven by the Evergrande bankruptcy in China and news that Elon Musk’s companies had sold all their Bitcoin holdings.
Bitcoin had collapsed as low as $26,280 (.786 Fib) last Thursday and continued to dip further on Friday to meet the support at $25,580 (.886 Fib);
Yesterday, Bitcoin continued to set fresh two-month-lows as it dipped beneath $26,000 to reach as low as $25,415.
It has since recovered above $26,000, but the buyers are struggling to hold this support level.
So, the question is – how low can Bitcoin go?
The good news is that there’s a plethora of support on the way down if $BTC slides beneath the $26,000 support again.
The first level of support is at $25,580 (.886 Fib Retracement). This is closely followed by support at $25,415 (May 2022 lows), $25,000, $24,750 (June 2023 lows), and $24,235 (December 2020 resistance).
If the sellers continue further beneath $24,000, additional support lies at $23,000, $22,650 (December 2020 support), $22,000, and $21,600.
Added support can also be expected at $21,000, $20,700, $20,000, and $19,720 (Nov 2020 highs).
What Coins Are Traders Hedging Their Bets With?
While the price of Bitcoin continues to sink, traders are starting to turn their attention to lesser-known alternatives that aren’t correlated to the Bitcoin price movements.
These emerging projects are touted to provide significant returns in the short term as traders rush to get positioned at what could be the lowest prices.
We know traders are rushing to these projects because the fundraising continues to rise, even during the recent Bitcoin price collapse – indicating that traders are hedging their bets by investing a small portion of their portfolios into the projects.
In particular, Wall Street Memes ($WSM) and Sonik Coin ($SONIK) are two meme coins turning heads as traders believe they can provide upward of 10x returns over the coming weeks.
Wall Street Memes Soars Past $25 Million.
The Wall Street Memes ($WSM) presale has quickly become the fastest-growing presale project in 2023 after sailing past the $25 million market, indicating the extraordinary hype and FOMO behind the project.
The presale is now in its final stage, meaning this is your last chance to get positioned before the token gets listed on major tier-1 exchanges in the coming weeks.
Experts are hinting that $WSM could immediately be listed on top-tier exchanges like Binance as its colossal community would generate enormous trading volumes for the exchanges.
Wall Street Memes has cultivated a cult-like community of over 1.1 million followers on social media through its hilarious meme-based humor.
The entire idea behind the project is to mock the Wall Street capitalists and expose the traditional financial system through memes.
The memes have become so popular that they generate over 40 million impressions on X, formerly known as Twitter, making it the internet’s go-to source for trading and finance-related memes.
The popularity of the memes even attracted the attention of X CEO Elon Musk, who’s been seen commenting on the memes on several occasions;
The interactions with Musk sparked a wave of FOMO as whales started to rush to get positioned in the presale’s final stages.
One whale went all-out and bought $850,000 worth of $WSM in one purchase – demonstrating his extraordinary confidence in the project;
In addition, Wall Street Memes recently announced a new staking mechanism for its presale investors, allowing $WSM to send their tokens to the staking contract to earn an additional APY while they wait for the launch.
The tokenomics behind the project are also community-orientated as they’re fully reserved for the community, with the team not assigning any tokens for themselves.
Half of the two billion $WSM supply is sold for the presale. The other half is reserved for additional liquidity to tier-1 exchanges and providing community rewards – such as the staking feature.
Overall, traders are in a hurry to get positioned in this token because they believe it will provide considerable returns with the vast following, meme-based humor, and attention from whales and Elon Musk.
The project has created the perfect balance between hype and FOMO to set the foundation to turn it into the next meme coin sensation on the market.
However, with just a few weeks before it is listed on major tier-1 exchanges, time is running out to get positioned before the token starts to trend across the industry. This is your last chance to pay presale prices or face the pain of paying higher costs once the token has launched.
Sonik Coin Sees Strong Growth As Traders Intrigued By Stake-2-Speed Mechanism
Another token that’s seeing momentum as the price of Bitcoin drops is Sonik Coin ($SONIK).
The presale for this project just launched last week and managed to raise over $345,000 during one of Bitcoin’s worst weeks since the FTX collapse – demonstrating investors’ confidence.
Described as the moronic recreation of Sonic the Hedgehog, Sonik is on a mission to use his deceptive speed to push $SONIK into becoming the fastest-growing meme coin in the sector.
The meme coin sets itself apart from the industry as it has the potential to go viral as it’s based on one of the gaming industry’s most beloved characters.
However, instead of collecting rings like Sonic the Hedgehog, Sonik will be collecting $SONIK tokens to fuel his capitalistic ego.
The project wants to break the record of becoming the fastest meme coin to go from a $0 to $100 million market cap.
To achieve this, the project has implemented a groundbreaking Stake-2-Speed mechanism.
This intuitive staking contract allows $SONIK buyers to stake their tokens and earn an incredible APY – even before the token has launched on exchanges.
Community members that stake their $SONIK tokens can earn extra tokens for staking their holdings for at least seven days.
The APY returns for staking are reminiscent of the yield hunting days of yesteryear, as they provide considerably high returns.
So far, over 12 billion $SONIK have been staked – providing stakers with an insane 188% APY;
The tokenomics behind the project pay homage to Sonik’s speed, estimated to be 299,792,458,000 m/s – the speed of light.
Therefore, there are a total of 299,792,458,000 $SONIK tokens in circulation, with 50% of them being sold in the presale at a price of $0.000014.
The project aims for a modest $2.1 million hard cap, providing significant room for growth once the token launches on exchanges and explodes.
In addition, the team has ensured a fair and transparent launch by ensuring that the presale price and the exchange launch price will be identical.
Of the remaining supply, 40% is reserved to provide staking rewards for the next four years, and 10% is set aside to add liquidity to decentralized exchanges for the launch.
Overall, Sonik Coin is already on the way to achieving its goal of becoming viral enough to become the fastest-growing meme coin to hit a $100 million market cap.
The fact that it managed to raise over $345,000 in its presale during the Bitcoin downturn shows that traders are intrigued by the type of returns $SONIK can provide.
With such a small hard cap in the presale, it’s not expected to be around for too long, so investors are encouraged to get positioned as soon as possible.
Disclaimer: CaptainAltcoin does not endorse investing in any project mentioned in this article. Exercise caution and do thorough research before investing your money. CaptainAltcoin takes no responsibility for its accuracy or quality. This content was not written by CaptainAltcoin’s team. We advise readers to do their own thorough research before interacting with any featured companies. The information provided is not financial or legal advice. Neither CaptainAltcoin nor any third party recommends buying or selling any financial products. Investing in crypto assets is high-risk; consider the potential for loss. Any investment decisions made based on this content are at the sole risk of the reader. CaptainAltcoin is not liable for any damages or losses from using or relying on this content.
