Bitcoin analysis; How long will the BTC price fall?
Bitcoin is about 22% away from its all-time high price (ATH), and many analysts believe that the price floor is in the range of $45,000 to $50,000.
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Summary of analysis
- The decrease in the price of Bitcoin caused this digital currency to once again fall below its 200-day moving average.
- Several indicators point to a deeper market correction to the $50,000 range.
According to Cointelegraph, the price of Bitcoin
BTC:
It has decreased by 3.5% in the last seven days. During this period, a large part of the price increase achieved since August 5 (15 August) from the floor of $49,500 has disappeared.
The price of Bitcoin has decreased by more than 20% in the last 90 days and its trading volume has also decreased by 32% during the same period. At the same time, several indicators indicate a deeper correction of the market, and for this reason, the possibility of price recovery from the current levels seems unlikely.
Analysts talk about the possibility of price reduction to $50,000
Analysts at 10x Research have predicted that the price floor of Bitcoin is in the range of $50,000. The company's analyst Markus Thielen has shared the following chart, which shows that the price of Bitcoin has fallen below the uptrend line in an asymmetric triangle pattern. A break of this support could lead to a retest of the price level below $50,000. Thielen said in this regard:
Bitcoin price falling below $50,000 is inevitable.
Michael Van de Poppe, the founder of MN Capital, has predicted a similar goal for Bitcoin. He said that Bitcoin has collected the liquidity of the demand side by falling below the price floor on August 15 (25 August) i.e. the level of $56,000. He said in a post on Twitter:
Markets are correcting. Liquidity has accumulated, but not enough for the upside return we expect. In this case, there is a possibility that we will see the level of 53,000 dollars and even 49,000 dollars before the return process of Bitcoin price. We are still at the beginning of September.
Meanwhile, Glassnod analysts have predicted that since the level of $51,000 is equivalent to the true middle of the market and its historical support, there is a possibility of a price decline towards it. The last report of this company states:
In case of local price stagnation, maintaining the level of $51,000 is of great importance for further price increases.
What is the impact of the loss of the key support of $58,000 on the Bitcoin price trend?
Bitcoin's price drop from the peak of $65,000 on August 25 (September 4) and reaching the bottom of $55,555 on September 4 (September 14) caused Bitcoin to once again fall below the 200-day moving average. .
A well-known analyst named Skew stated that Bitcoin's recent price action has caused more sell orders to be placed near the $58,000 level. This suggests that this level can act as a tough resistance for buyers in the short term.
At the time of writing this analysis, Bitcoin's 200-day moving average is at $59,533. Usually, the 200-day EMA is a key support in bullish cycles for Bitcoin. Missing this level could expose Bitcoin to more severe corrections. Such data from IntoTheBlock (IntoTheBlock) shows that Bitcoin faces less challenges in the downward path than in the upward path.
The site's Inflow/Outflow of Money Near Price (IOMAP) indicator shows that Bitcoin is facing major resistance on the upside.
The first resistance zone is in the range between $57,928 and $59,668, where approximately 929,379 BTC were bought by 1.98 million addresses. This suggests that Bitcoin's uptrend may be halted in this area, and is likely to be followed by a deeper correction.
What is the target range of the bearish flag pattern?
Bitcoin's price behavior has caused a bearish flag pattern to form on its daily chart. This pattern is a corrective structure that appears after the price swings in an ascending channel formed after the Sharpie correction of the price.
A bearish flag pattern is usually completed when the price of Bitcoin breaks below the lower trend line of the channel and falls as low as its previous correction high. Accordingly, the target of this pattern is placed at the level of $45,450.
In addition, the daily RSI indicator of Bitcoin is at the level of 44, which indicates that market conditions are still in favor of sellers and strengthens the chances of Bitcoin price reaching the target of the bearish flag pattern.
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