Bitcoin has fallen more than 20% from its all-time high

According to "Cointelegraph", since Bitcoin hit a record high, it has accumulated a correction of more than 20% in the past three months. Bitcoin has also fallen by more than 3% again in the past seven days, and most of its previous rebound from a low of $49,000 has been wiped out.

At the same time, Bitcoin’s average daily trading volume also shrank by 32%, further exacerbating the market weakness. Although Bitcoin's long-term value is still recognized by many investors, recent market indicators indicate that a larger correction may be coming.

Analysts predict Bitcoin will fall below 50,000

Markus Thielen, an analyst at 10x Research, pointed out that Bitcoin recently fell below the rising trend line of the asymmetric triangle, which usually indicates the possibility of further declines, and asserted: "Bitcoin falling below $50,000 is inevitable."

Source: 10x Research analysts predict that Bitcoin will fall below 50,000

Well-known analyst Michael Van de Poppe also pointed out that after Bitcoin fell below the low of $56,000, it did not see the expected sharp rebound, but instead came under further pressure. Bitcoin could fall to $53,000 and even further into the $49,000 range in the coming days before the market rebounds.

Additionally, analysts at blockchain data platform Glassnode also predict that $51,000 will serve as key support if Bitcoin falls further. Analysts pointed out that $51,000 is not only the average price level of Bitcoin’s current market, but also has a historically important support role.

If Bitcoin can halt its decline at $51,000, it may be able to provide momentum for a potential rebound.

Image source: Glassnode Glassnode predicts that $51,000 will become a key support

Will Bitcoin’s market outlook turn around?

While Bitcoin prices continue to slide, key indexes are signaling a rebound is imminent?

The Cryptocurrency Fear and Greed Index shows that market sentiment has dropped to the fear level in the past few days, even falling to 26 at one point, indicating a lack of investor confidence.

However, Quinn Thompson, founder of digital asset hedge fund Lekker Capital, believes that when market sentiment reaches fear, it may indicate that the bottom is coming.

He pointed out that the U.S. Bitcoin spot ETF funds have recently experienced net outflows for many consecutive days, and also set the largest single-day net outflow since May 1. A similar situation occurred previously when Bitcoin fell to a short-term bottom of $56,500. At that time, Bitcoin rebounded 27% over the next three weeks to reach $72,000.

According to the foreign media "CoinDesk", the Cryptocurrency Fear and Greed Index provides multiple prompts for long opportunities. In July, when the indicator fell to 25 (fear level), Bitcoin climbed from a low of $53,000 and surged to near $70,000 by the end of the month. And in early August, Bitcoin prices fell to $49,000 and the indicator fell to the 17 (Extreme Fear) level, before Bitcoin rebounded 32% in three weeks to reach $65,000.

Source: Crypto City Cryptocurrency Fear and Greed Index

[Disclaimer] There are risks in the market, so investment needs to be cautious. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions contained in this article are appropriate for their particular circumstances. Invest accordingly and do so at your own risk.