Bitcoin (BTC) еntеrs Sеptеmbеr on a cautious note, with its recent monthly and weekly closes raising alarms among analysts and traders alike. The cryptocurrency, which has often been hailed as digital gold, is now facing significant bearish pressure. Alan Santana, a well-known crypto analyst, has sounded the alarm, predicting a potential crash as key technical indicators flash warning signs.
Bearish Signals Loom Over Bitcoin
Santana’s analysis paints a bleak picture for Bitcoin’s immediate future. The cryptocurrency has failed to maintain critical support levels, struggling to stay above the 8, 13, and 21-week exponential moving averages. This failure is particularly concerning because it indicates a weakening bullish momentum. The weekly close below the crucial $57,950 level—a threshold only breached once this year—adds to the mounting concerns. According to Santana, these signs suggest Bitcoin could plummet to levels between $43,000 and $38,000 in the coming weeks.
Selling Pressure Intensifies
The bearish outlook is further supported by a significant lack of buying interest. Data from TradingView reveals that bulls have been unable to counter persistent sell-side pressure, hinting at a decline in investor confidence. Popular trader Skew highlights that sellers have dominated low-timeframe market conditions, with only minimal buying interest seen around the $58,000 mark. However, Skew notes that a broader increase in demand is necessary to reverse the current trend.
This lack of interest is not just limited to the spot market; it extends to the derivatives market as well. Skew observes a general reluctance among traders to open new positions at current prices, suggesting that negative or minimal funding rates may prevail in the near future. This cautious approach indicates that traders are waiting for a more defined market direction before re-engaging, further contributing to the bearish sentiment.
Mixed Predictions – Some See Hope Amid the Gloom
Despite the overwhelming bearish sentiment, some analysts maintain a more optimistic outlook. Captain Faibik, another prominent analyst, identifies a bullish flag pattern on the Bitcoin chart. He suggests that if Bitcoin manages to bounce from its current support levels of $54,000, it could see an upward price movement toward $68,000 in September.
Also Read: Bitcoin Drops 9.58% In A Week, But Analysts Eye Bull Run As Accumulation Rises 16.6%
Taking an even bolder stance, the renowned analyst Titan of Crypto predicts a surge to a staggering $110,000 based on the formation of a bullish Cup & Handle pattern. While Titan acknowledges a short-term wait, he remains confident about a strong final quarter for Bitcoin. Adding to this bullish chorus, CryptoJelleNL projects a price of $180,000 for Bitcoin by 2025, suggesting that the long-term outlook may still hold promise despite the current bearish trends.
As Bitcoin navigates through a challenging September, the market remains divided. While bearish signals dominate the short-term outlook, with predictions of a potential crash to $38,000, there are still those who see a silver lining. Whether Bitcoin will succumb to the bearish pressures or stage a dramatic recovery remains to be seen, but one thing is clear: the cryptocurrency market is as unpredictable as ever, keeping both traders and analysts on their toes.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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