Crypto Market Plunges into ‘Extreme Fear’ as Experts Predict Bitcoin Drop Below $50K

Crypto market confidence has plunged, hitting its lowest point in over a month, sparking discussions of an imminent Bitcoin price downturn beneath the $50,000 mark possibly by this weekend.

The Crypto Fear & Greed Index, which evaluates the overall mood in the cryptocurrency environment, dipped to 22, a level not observed since early August.

Axel Adler, an analyst and author at CryptoQuant, highlighted on a Sept. 6 X post that the index had previously fallen to 17 when Bitcoin’s price dropped to $49,000. Adler noted historical lows in the index, such as 10% during China’s mining ban and 6% during the Luna crash, emphasizing a pattern of fear during major market dips.

With September’s arrival, concerns have intensified about a potential correction below $50,000. Arthur Hayes, the former CEO of BitMEX, predicted a drop below this critical threshold as soon as this weekend, mentioning, “BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”

September BTC price dip in line with halving cycle

Historically, September has shown to be a turbulent month for Bitcoin, with average returns around -4.69%, marking it as typically the worst month for Bitcoin performance, based on CoinGlass data.

Crypto analyst Rekt Capital pointed out in a Sept. 6 X post that the current decline of -6.19% for September aligns with the minor downturns seen in previous years. He emphasized that this trend aligns with past Bitcoin halving cycles and is not unexpected.

Rekt Capital also discussed a recent rejection from a key resistance level, stressing the importance of sustained trading above this resistance to confirm an upcoming trend. He suggested that failure to overcome this could lead to further declines.

Moreover, some analysts believe this dip could set the stage for a significant rally. Mags, a well-known crypto trader, shared on Sept. 5 that Bitcoin is forming a substantial cup-and-handle pattern, indicating potential bullish momentum ahead.

Bitfinex analysts also hinted at a possible fall below $50,000 before a true bullish surge takes hold, explaining that each cycle’s peak return decreases by approximately 60%-70%, with the average correction also diminishing.

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