In the past half month, the price of Bitcoin has continued to fall, and the market bearish sentiment has become stronger. Does this mean that Bitcoin is about to usher in a larger decline?
Since August 25, the price of Bitcoin has been falling all the way, from a high of $65,000 to a low of $57,000, a cumulative decline of more than 12%. This decline has further hit investors' confidence, and the entire crypto market is filled with pessimism. At present, the situation in the entire crypto field is not optimistic. Bitcoin is still hovering in the downward channel, gradually distanced from the high point in March. In the next few weeks, Bitcoin may return to the low range of around $50,000.
Bitfinex mentioned in a report, "If the interest rate is cut this month, Bitcoin may fall another 15-20%, and the bottom may be between $40,000 and $50,000. This prediction is not made at random, but is based on the fact that the peak return percentage of each cycle is reduced by 60-70%.
QCP Capital's latest analysis also pointed out that Bitcoin has fallen in September in 6 of the past 7 years, with an average decline of 4.5%. According to this pattern, Bitcoin may fall to about $55,000 this year.
Cryptocurrency analyst Ali pointed out that "Bitcoin's current key resistance level is around $63,250. If BTC cannot convert this area into support, the market may continue to be under selling pressure."
However, Bitcoin is forming a "cup handle" pattern, which is a bullish chart pattern, suggesting that there may be a rebound in the future. Elja Boom also mentioned that once BTC breaks through the "reverse head and shoulders" pattern, it is expected to hit $100,000 in the fourth quarter of this year.
Previous Bitcoin plunges have often been sudden, unlike the current general bearish sentiment. It is worth noting that the general bearishness of the market does not mean the actual distribution of chips. The main force holding a large number of chips may also be bullish. Therefore, it cannot be simply concluded that Bitcoin will continue to fall.
