A Bitcoin correction below the $50,000 psychological mark could occur as soon as this weekend, threatening to create more downward pressure in September, which is a historically bearish month.
The Bitcoin (BTC) price could see more downside pressure this weekend as whales (entities holding large amounts of BTC) look to lock in profits.
One savvy whale address sold 100 BTC, worth over $5.3 million, to lock in over $206,000 in profit.
Following suit, a total of 402,000 BTC worth over $21 billion was bought by addresses that are likely looking to sell at break even, according to a Sept. 7 X post by onchain intelligence firm Lookonchain:
“836,000 addresses bought ~402,800 $BTC ($21B) at a price between $51,113 and $54,303. These addresses are likely to sell near the breakeven.”
In/out of the money around price. Source: Lookonchain
Whales can significantly impact a cryptocurrency’s price action due to the high amount of market-moving capital. Traders often follow whale selling patterns for cues on a cryptocurrency’s short-term price trajectory.
Related: Crypto venture capital funding surges to $633M in August rebound
Bitcoin could correct below $50,000 — Arthur Hayes
Bitcoin could see a correction below the key $50,000 psychological mark as soon as this weekend, warned Arthur Hayes, former CEO of crypto exchange BitMEX,
Hayes wrote in a Sept. 6 X post:
“BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”
Meanwhile, Bitcoin price lost its key $55,000 support, falling 1.4% to trade at $54,340 in the 24 hours leading up to 9:26 am UTC on Sept. 7. The world’s first cryptocurrency is down nearly 8% on the weekly chart.
BTC/USD, 1-day chart. Source: Cointelegraph
Bitfinex analysts warned of a potential correction below $50,000 before the real bull rally. The analysts told Cointelegraph:
“This is not an arbitrary number, but based on the fact that the cycle peak in terms of percentage return reduces by around 60%–70% each cycle, and the average bull market correction has reduced as well.”
Adding to investor concerns about more incoming selling…
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