Bitcoin (BTC) price has declined by more than 3% over the last seven days, with the bulk of gains accrued from the Aug. 5 low at $49,500 being erased.
BTC/USD daily chart. Source: TradingView
Bitcoin’s price is down 20% over the last 90 days, and its daily trading volume has dropped by 32% over the same period. However, several indicators hint at a deeper correction, making a swift recovery from the current price level unlikely.
Analysts say Bitcoin could drop to $50,000
Bitcoin’s downtrend has led analysts at 10x Research to predict prices in the low $50,000 range.
Markus Thielen, an analyst at 10x Research, shared the following chart showing that the latest correction saw Bitcoin price drop below the ascending trendline of an asymmetrical triangle. A breakdown of this support line projected a retest of the Aug. 5 lows below $50,000.
“A Bitcoin drop below $50,000 is inevitable.”Source: Markus Thielen
Michael Van de Poppe, the founder of MN Capital, has a similar target for Bitcoin. Van de Poppe noted that Bitcoin broke below the Aug. 15 low at $56,000 to collect the demand-side liquidity lying under it.
However, this did not produce the required upward bounce, putting Bitcoin at risk of further declines to “$53k or even $49K,” before bouncing back.
BTC/USD 4-hour chart. Source: Michael Van de Poppe
Meanwhile, Glassnode analysts anticipate Bitcoin to slide toward $51,000 as this level is the true market mean and historic support.
“In the event of a local downturn, the pricing level of $51k remains a critical area of interest that must be maintained for further price appreciation.”Bitcoin realized price true-market mean. Source: Glassnode
Bitcoin price loses key support level at $58,000
Bitcoin’s drop from a high of $65,000 on Aug. 25 to a three-week low of $55,555 on Sept. 4 saw BTC break below the 200-day exponential moving average (EMA) again.
Commenting on the latest price action, popular trader Skew noted that Bitcoin’s price had resulted in increased ask bids around the $58,000 mark. This suggests that this level acted as a stiff resistance for Bitcoin bulls in the short term.
Source: Skew
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