As a seasoned market analyst with over two decades of experience under my belt, I have witnessed countless market corrections and bull runs throughout my career. The ongoing Bitcoin correction, while not historically deep at around 23%, has certainly sparked concerns among many investors and traders.
Over the last six months, the Bitcoin market has experienced a downward adjustment, amounting to approximately 23%. However, this percentage isn’t exceptionally steep when viewed from a historical perspective.
However, analysts are growing increasingly bearish the longer this downtrend continues.
On September 5th, the trader ‘Crypto Louca’ expressed an expectation in a post on X that the value of Bitcoin would continue to decrease this year, with a potential range between $36,000 and $46,000.
$BTC Good probability we hit that zone before end of year
36-46k
— Crypto Louca (@Cryptolouca) September 5, 2024
Bitcoin Bears Are Back
According to the analysis by IncomeSharks, if September doesn’t mark a turning point in the market, then it might be wise to consider exiting this investment structure.
Experts anticipate a potential drop in price below $50,000 prior to October, warning that failing to do so might indicate a challenging period for several months to follow.
When asked if he was becoming bearish, the analysts responded:
“Nope, still neutral. If it wasn’t an election year I’d be bearish.”
As a researcher, I’m sharing an insight from our team at CryptoQuant. According to our analysis, the recent dip in Bitcoin’s price appears to be primarily due to a lack of significant demand expansion at this time.
He remarked that all evaluation indicators are currently signaling a downward trend. However, he noted that traditionally, the fourth quarter tends to be favorable. Yet, the outlook also hinges upon the broader economic and Bitcoin market circumstances.
#Bitcoin price is down simply because there is no demand growth. Small
Indeed, demand is declining right now.
Basically all valuation metrics are in bearish territory.
— Julio Moreno (@jjcmoreno) September 5, 2024
Financial expert Peter Brandt recognized the graphical pattern he saw as either an “upside-down broadening formation” or a “megaphone shape.”
He said that a test of the lower boundary of this formation would be a fall to around $46,000.
To rekindle the current bull market, a significant push toward all-time highs (ATHs) is needed, according to his statement, which also implied that sellers are more dominant than buyers at present.
In simpler terms, the pattern you’re looking at, often referred to as a “descending broadening wedge,” is a bullish reversal in Bitcoin’s price chart. This pattern is formed by two lines that initially diverge and then converge, indicating a potential upward momentum. For this upward shift to occur, Bitcoin needs to break the upper boundary line and overcome the resistance there.
Needing A Recovery Bounce
As a dedicated crypto investor, I’ve noticed that Bitcoin has established a new resistance level. It’s crucial for it to bounce back promptly to avoid confirming a potential breakdown before the end of the weekly candle. This way, we can keep the positive momentum going.
During early trading in Asia on Friday, Bitcoin dipped below $56,000 momentarily. As I write, it’s being traded for approximately $56,664. However, overall sentiment seems negative, and Bitcoin is hovering near the lower support levels of its six-month price range.
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2024-09-06 09:41