The price of Bitcoin quickly surged by 5% yesterday, allowing the number one ranked cryptocurrency to reach as high as $26,520 during the period.
The cryptocurrency has since retreated to $26,000, but the sudden revival has traders leaning toward a more optimistic end to September.
Meanwhile, as Bitcoin attempts a recovery, a Bitcoin-themed alternative is turning heads as it raises a whopping $1.5 million in just one week.
Bitcoin BSC ($BTCBSC) is a new stake-to-earn project providing a remarkably high APY return, with stakers looking for tokens in the staking pool for 300% APY.
What you'll learn 👉
Bitcoin Price Recovers Quickly Following Support Breakdown
After a troubling week when Bitcoin set a fresh 90-day low, the bulls have quickly returned to help bring the asset’s price back above $26,000.
$BTC price has been on rocky territory since mid-August after collapsing beneath the $28,650 support to reach as low as $25,770.
Since then, the buyers have attempted to defend the aforementioned support, but yesterday’s movement caused Bitcoin to set a fresh three-month low price at $24,920.
The move was quickly reversed yesterday as the buyers stepped in to push Bitcoin back above $26,000, allowing it to reach as high as $26,520 during the period;
The whipsaw-like price action has some traders feeling optimistic, while others suggest that the bearish rally is far from over.
Looking ahead, if the sellers push back beneath $25,770, the first support lies at $25,415 (May 2022 lows). This is followed by support at $25,000, $24,755 (June 2023 lows), $24,500, and $24,235 (December 2020 resistance).
Beneath $23,000, added support lies at $23,570 (downside 1.272 Fib Extension), $23,000, and $22,650 (downside 1.414 Fib Extension).
On the other side, resistance lies at $26,400, $26,950, $27,500, $ 27,745 (Jan 2021 lows), and $28,225.
Double-Top and Shrinking Liquidity a Problem?
While some analysts are optimistic about the fast recovery, others suggest that the fresh three-month low indicates what’s coming next – hinting at more downside action.
For example, popular analyst Rekt Capital stated in August that a drop to $26,000 by mid-September would form a Double Top formation – hinting at further downside price pressure toward $22,000.
This setup has now officially played out;
If #BTC drops to ~$26000 by mid-September then a Double Top may be forming
— Rekt Capital (@rektcapital) August 7, 2023
A breakdown from ~$26000 would validate the DT
And a Measured Move for the DT would be ~$22000
Worth noting but still very early stages & lots can still change in the meantime$BTC #Crypto #Bitcoin pic.twitter.com/I4npIDq44f
In addition, the liquidity crunch in the market is also causing major concerns. The lack of liquidity could result in a situation where those wanting to exit positions might struggle in a falling market – causing further price declines;
<blockquote class=”twitter-tweet”><p lang=”en” dir=”ltr”>Liquidity across the digital asset market continues to dry up, with both on-chain and off-chain volumes reaching historical lows. <br><br>Whilst HODLing remains the market preference, a significant proportion of the supply is teetering on the edge of falling into a significant… <a href=”https://t.co/twInh0OqKf”>pic.twitter.com/twInh0OqKf</a></p>— glassnode (@glassnode) <a href=”https://twitter.com/glassnode/status/1701233473539740061?ref_src=twsrc%5Etfw”>September 11, 2023</a></blockquote> <script async src=”https://platform.twitter.com/widgets.js” charset=”utf-8″></script>
Overall, the outlook is still quite mixed amongst traders, with the majority starting to invest in lesser-known altcoins with larger upside potential during the bear market.
Meanwhile, Stakers Lock Tokens in Bitcoin BSC Pool for Epic 350% APY
One lesser-known altcoin that’s turning heads is a new stake-to-earn Bitcoin derivative – Bitcoin BSC.
The project only launched a week ago but has already managed to raise a whopping $1.5 million in its presale, demonstrating the building hype behind the stake-to-earn system.
Bitcoin BSC is following the recent success of Bitcoin derivatives, with predecessors like BTC 2.0 and BTC20 providing up to 5x returns for early adopters at its peak.
The project introduces a groundbreaking verified staking contract that releases $BTCBSC tokens in line with the original Bitcoin blockchain rewards schedule.
Those staking $BTCBSC earn a percentage of these rewards through the energy-efficient and accessible PoS algorithm.
With every Bitcoin block confirmation, a number of $BTCBSC tokens are released and distributed to stakers on the network.
The more $BTCBSC staked, the higher the share of rewards.
Investors in the presale are already locking their $BTCBSC purchases into the staking pool, providing them with an APY of around 370%;
The project is bringing Bitcoin to the Binance Smart Chain, allowing it to leverage the security and technology of Ethereum as it’s built on the same codebase.
In addition, Binance Smart Chain will provide quicker transactions with cheaper fees. It will also make the token highly accessible through popular wallets like MetaMask and Trust Wallet.
The tokenomics behind the project mirrors the 21 million supply of $BTC.
The presale is paying homage to the early days of Bitcoin when there were around 6 million $BTC in circulation, priced at $1.
Therefore, the presale is selling 6.125 million $BTCBSC at a price of $0.99, allowing everybody the opportunity to get positioned in the upgraded version of Bitcoin for less than $1.
Following the presale, any unsold tokens will be locked in the staking contract to provide rewards for the next 120 years – lining up the Bitcoin block reward schedule.
Bitcoin BSC Predicted to Provide Supply Shortage and Sudden Surge?
Experts believe that the Bitcoin BSC provides a unique value proposition as it can potentially cause a sudden surge in price due to the supply shock caused by the staking system.
To put this into perspective, 14.455 million $BTCBSC – 69% of the supply – will already be locked in the staking contract as soon as the presale ends.
In addition, the majority of presale investors are expected to lock their tokens into the staking pool to take advantage of the impressive returns through passive staking.
As a result, most tokens won’t be available to purchase on the open market, leading to a supply shock.
Therefore, newcomers looking to enter the Bitcoin BSC ecosystem following the presale will likely be forced to pay much higher prices to get positioned in the asset – leading to higher prices.
This is why the presale is already generating such a strong buzz amongst staking officiants.
$1.5 Million Raised in One Week – Presale Expected to Sell Fast
The presale isn’t expected to last too long after raising over $1.5 million in its first week.
Investors are flocking to the project to take advantage of the passive staking and the supply shock they believe staking will cause.
Therefore, those looking to get positioned in $BTCBSC beneath $1 are encouraged to buy during the presale phase.
At this rate, the presale isn’t expected to last more than a fortnight – so time is of the essence.
Alternatively, you can purchase $BTCBSC once the market launches, albeit likely at much higher prices.
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.
