According to Cointelegraph, Bitcoin's (BTC) price is experiencing bearish pressure as the total cryptocurrency market cap drops below $2 trillion. The crypto fear and greed index indicates 'extreme fear' in the market, a sentiment not seen since early August.
Bitcoin recently hit a monthly low of $55,250 on September 6, testing an untouched demand zone from August. On the 1-hour chart, Bitcoin could potentially swing high toward $57,500, supported by a bullish divergence between the price and the relative strength index (RSI). Each swing low on the hourly chart has seen an average recovery of around 4% in September, which translates to a price range of $57,500 to $58,000. At $57,500, upside liquidation leverage positions are present, and day traders might view this as a short opportunity.
A daily close below $55,000 could lead to further downside for BTC in the coming days, with a potential retest around $52,100. Axel Adler Jr., a Bitcoin researcher, notes that this is the 'next closest target' as it represents the current realized price of short-term holders. The range between $50,500 and $53,000 is marked by significant whale accumulations from February 2024.
If Bitcoin fails to hold the $52,000 level, $49,000 is expected to be the final support price, putting its long-term bullish structure under serious bearish pressure. Similar to the last bull run in 2021, Bitcoin may retest the 50-weekly EMA if it drops to $49,000. Bitcoin has not closed a weekly candle below the 50-weekly EMA since October 2023. In 2021, the 50-weekly EMA provided support before the second leg of the rally, and the RSI reset around the 50 level. A similar reset is occurring now, and if the price action repeats, Bitcoin should avoid prolonged consolidation under $50,000 to prevent a weekly close below the key EMA level. Another sweep at the $49,000 H2 2024 bottom could occur before the bull cycle continues.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
