Bitcoin’s price is currently hovering around $54,168, showing a tentative recovery of 10% from its eight-month low of $49,577, reached on August 5. However, the mood among traders remains cautious with concerns that the price might drop below $52,000 before any significant recovery is observed.
On September 6, Bitcoin saw a notable decline, dropping 5.9% from a high of $56,984 to a low of $53,613 during the day. This downturn has led analysts to keep a close eye on the $52,000 mark, which is considered a critical support level.
Popular trader Jelle highlighted the precarious position of Bitcoin following disappointing U.S. jobs data, which added to the bearish sentiment in the market. “#Bitcoin pushing deeper toward the lows at $52,000,” Jelle remarked on the social platform X. He pointed out that Bitcoin has fallen below important support levels, including the significant psychological barrier at $58,000, coinciding with the 200-day simple moving average.
Jelle emphasized the importance of bulls defending the $52,000 threshold, corresponding to the July 5 low, to prevent further declines. “Rektember out in full force,” he commented, underscoring the tough market conditions this September.
In another analysis, Daan Crypto Trades explored two potential scenarios for Bitcoin’s near-term trajectory based on Fibonacci retracement levels. One scenario suggested a bounce from the 61.8% retracement level at $54,604, while the other foresaw a possible breakdown below the $54,000 support, identifying $52,400—aligned with the 78.6% retracement level—as a crucial entry point for bullish traders.
Michael van de Poppe of MN Consultancy added that Bitcoin might test the support zone between $53,000 and $54,000 before potentially surging upwards. For this rebound to materialize, he noted that reclaiming the $56,000 level quickly is essential.
Amid these market movements, pseudonymous analyst Kyledoops shared insights from a CryptoQuant chart, indicating a decline in the percentage of Bitcoin’s Unspent Transaction Outputs (UTXOs) in profit since mid-July. “The percentage of Bitcoin UTXOs in profit has fallen to 68.5%, the lowest level since October 2023,” he reported, highlighting ongoing profit-taking activities among investors.
