The Bitcoin market correction, which has been ongoing for the past six months, is currently around 23%, which isn’t too deep historically.
However, analysts are growing increasingly bearish the longer this downtrend continues.
In a post on X on Sept. 5, trader ‘Crypto Louca’ predicted that Bitcoin price will continue to retreat this year, falling into a price zone between $36,000 and $46,000.
$BTC Good probability we hit that zone before end of year
36-46k pic.twitter.com/pPtRkSVUCz
— Crypto Louca (@Cryptolouca) September 5, 2024
Bitcoin Bears Are Back
Analyst IncomeSharks examined the market picture for this year and stated that if September isn’t the local bottom, “then it’s probably time to move away from this structure.”
They predicted another move below $50,000 before upward momentum in October, cautioning that if this doesn’t happen, the outlook could be bleak for months ahead.
When asked if he was becoming bearish, the analysts responded:
“Nope, still neutral. If it wasn’t an election year I’d be bearish.”
CryptoQuant head of research Julio Moreno said that Bitcoin price was down “simply because there is no demand growth.”
“All valuation metrics are in bearish territory,” he said before adding that seasonality is usually positive in the fourth quarter, “but it also depends on the overall economic and Bitcoin market conditions.”
#Bitcoin price is down simply because there is no demand growth. Small
Indeed, demand is declining right now.
Basically all valuation metrics are in bearish territory. pic.twitter.com/kmwb3pvpUc
— Julio Moreno (@jjcmoreno) September 5, 2024
Analyst and chart guru Peter Brandt identified the chart pattern as an “inverted expanding triangle” or a “megaphone.”
He said that a test of the lower boundary of this formation would be a fall to around $46,000.
“A massive thrust into new ATHs is required to get this bull market back on track,” he said before adding that selling is stronger than buying in this pattern.
However, this price structure, also called a “descending broadening wedge,” is a bullish reversal chart pattern formed by two diverging bullish lines. For momentum to shift upwards, BTC would have to reclaim the upper boundary line and break resistance there.
Needing A Recovery Bounce
Analyst ‘Rekt Capital’ observed that Bitcoin created a new resistance level and “needs to rebound soon to shake off this potential breakdown confirmation before the new weekly candle close.”
BTC fell below $56,000 briefly during early trading in Asia on Friday. It was changing hands for $56,664 at the time of writing but sentiment remains weak and the asset is teetering on the lower support bands of this six-month trading channel.
