On September 8, Bitcoin (BTC) recorded another monthly low, with analysts cautioning about the risks should it fall below $54,000. During the Asian trading session, BTC/USD plummeted to $55,282 on Bitstamp, as observed by Cointelegraph Markets Pro and TradingView.
The downturn occurred as the cryptocurrency market anticipated crucial unemployment data from the United States, with Bitcoin struggling to recover from the six-month lows it reached on August 5. Analyst Caleb Franzen highlighted the precarious situation, pointing to the 200-day simple (SMA) and exponential (EMA) moving averages, which were positioned at $63,840 and $59,462, respectively. He noted the formation of a “cloud” between these averages, indicating potential market movements.
“If Bitcoin loses this green range and has a daily close below $54k (the low daily close on Aug. 5), I’ll concede that this is a formal rejection & new low on the 200-day MA cloud,” Franzen stated. He emphasized that a drop below this level would not be a bullish sign and would signify a significant shift in market trend.
Despite the bearish outlook, Franzen also identified a bullish divergence on September 5, noting an upward trend in Bitcoin’s relative strength index (RSI) despite the falling price. “Bitcoin in a short-term regression downtrend, but with a bullish RSI divergence that’s still intact,” he observed.
Concerns about Bitcoin’s direction were echoed by other traders. Arthur Hayes, former CEO of crypto exchange BitMEX, expressed his bearish stance by initiating a short position, anticipating the price to drop below $50,000 over the coming weekend.
Similarly, trader Peter Brandt spotted a megaphone pattern on the weekly chart, suggesting that the market could see a “massive thrust” into price discovery. Brandt indicated that a test of the lower boundary could bring prices down to around $46,000. He summarized the current market dynamics by saying, “A massive thrust into new ATHs is required to get this bull market back on track. Selling is stronger than buying in this pattern.”
