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Bitcoin price prediction: will it keep up with meme coins hype

By:
on Aug 21, 2023
Updated: Aug 22, 2023
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  • Bitcoin plunged to $25,409 on Thursday evening.
  • There are fears that Bitcoin could dip further if it’s unable to break past $26,200.
  • Shiba Memu, a new meme coin in the presale phase has seen its presale surprise $2.168 million.

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Bitcoin made a scare plunge on Thursday sending shockwaves to the entire crypto space as investors feared it could drop past $25,000. BTC’s dip coincided with a US judge ruling allowing the US SEC interlocutory appeal request.

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Bitcoin bounced off the support at $25,409K almost immediately after the plunge. It has however not recovered much seeing that it was trading at $26,026 at the time of writing. Here are the key levels to watch as we delve into Bitcoin prediction amid a renewed meme coin hype.

Weekend BTC price consolidation

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Bitcoin (BTC) is still attracting interest in the exciting world of cryptocurrencies as it displays a growth of more than 0.50%, reaching $26,133 on Sunday before slightly pulling back just above $26,000 in the early hours of Monday morning. Notably, the cryptocurrency looks to have effectively avoided further losses thanks to the support near $26,000.

Furthermore, due to the recent decline in the price of Bitcoin, the well-known companies that have invested in Bitcoin have seen substantial unrealized losses due to the BTC price drop.  Microstrategy, for example, MicroStrategy Inc., incurred unrealized losses totalling over $600 million when Bitcoin dropped towards $25k.

Microstrategy purchased 150,000 Bitcoins for a total investment of $4.5 billion, translating to an average price of about $29,970 per Bitcoin. Since June, MicroStrategy had not experienced a loss in its Bitcoin holdings until the recent plunge where the price fell 11% in three days from its peak of over $29,000 on August 16.

Bitcoin price prediction

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Since it fell below the $29,000 line on August 6th, there has been a lot of movement in Bitcoin’s technical landscape. The cryptocurrency’s price, which is currently hovering around $26,000, has significantly dropped.

When looking at the four-hour timeframe, Bitcoin has displayed “Three Black Crows” candlestick patterns, pointing to strong bearish market sentiment.

The oscillators Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) have entered the oversold level, highlighting the current bearish dominance.

Recent candlestick closes have confirmed a continued bearish trend, which has been confirmed by the 50-day Exponential Moving Average (EMA) at roughly $27,300.

A bearish engulfing candlestick and a two-day candle pattern below this level point to continued bearish pressure despite the $26,200 level serving as the immediate resistance. If the current pattern holds, Bitcoin may fall again to $25,600, or even $25,200.

The resistance around $26,800 might be targeted if the price of BTC rises above the $26,200 mark, and further increases could drive it toward $27,300 and ultimately $27,600.

On the other hand, a decline below $25,200 might portend the possibility of more losses, possibly falling as low as $24,800.

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Contrary to past experiences where popular meme coins like PEPE, Shiba Inu, and Dogecoin have taken advantage of Bitcoin dip to gain the attention of crypto investors, the recent price dip cut across the entire crypto market including the meme coin market. According to data on Coinmarketcap, the market cap of the top memes tokens had dropped by about 1.69%.

The prices of the top three popular meme coins Dogecoin, Shiba Inu and PEPE, had dropped 1.56%, 2.83%, and 0.90% respectively over the past 24 hours. But while a majority of old popular meme coins drop, a new meme coin is seeing increased activity in its token presale, Shiba Memu (SHMU), which is currently in the presale phase has seen its presale hit $2.168 million over the weekend.

Shiba Memu is leveraging the power of artificial intelligence (AI) and the hype around the meme coins to attract attention to itself and it is already proving to be a great competitor in the crypto space seeing that its price has been rising every six hours during the presale.

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