Critical Bitcoin Indicator: Analyst Foresees Major 75% Correction Ahead
2024年9月4日 - 5:00PM
NEWSBTC
The Bitcoin price has been unable to break out of its current
downtrend after losing the $60,000 mark this week, trading as low
as $57,790 on Tuesday. However, one indicator is pointing to
further price corrections for the largest cryptocurrency on the
market that could send the coin well below current levels.
Bitcoin Faces Major Risks In a recent social media post, crypto
analyst Ali Martinez has pointed to the Stochastic Relative
Strength Index (RSI) on Bitcoin’s 2-month chart, which has recently
indicated a trend reversal from bullish to bearish. This is
noteworthy because historical patterns over the past decade show
that similar signals have often preceded significant price
corrections of 84%, 59%, and an average of 75.5%. Related Reading:
Crypto Firm Galois Capital Faces $200K Fine From US SEC For
‘Investor Violations’ The Stochastic RSI is a momentum oscillator
that measures the level of a security’s closing price relative to
its price range over a specific period. When it indicates a bearish
trend, it suggests that the asset may be overbought and due for a
price drop. Interestingly, the last notable trend reversal occurred
in 2022 when Bitcoin was trading around $60,000. Following that
signal, the cryptocurrency plummeted to a cycle low of
approximately $16,000 before embarking on a recovery that
culminated in new all-time highs of $73,700 in March of this year.
If the current bearish trend holds, Bitcoin could face a dramatic
decline. Should a 75% correction materialize from its current
trading level of $57,000, the largest cryptocurrency could
potentially drop to around $14,200 per coin. Such a
significant downturn would likely dampen bullish expectations for
the market, especially in a year marked by the Halving event that
took place in April, which historically has been a catalyst for
price increases. Can BTC Bounce Back After September? In addition
to the bearish sentiment in the market, which could spell
short-term trouble for BTC, the leading cryptocurrency faces a
challenging September, historically known as its worst performing
month. Market expert Alex Thorn emphasizes that over the past
decade, Bitcoin has experienced declines in seven of the last ten
Septembers, with losses ranging from 5% to as much as 18%.
Related Reading: Stacks (STX) Drops 15% Despite Continuous On-Chain
Developments – Details However, Thorn points out that October tends
to provide a stark contrast to September’s declines. Historically,
October has been Bitcoin’s best month, with the cryptocurrency
often rebounding significantly. Gains in October have typically
ranged from 20% to 52%, making it a critical month for bullish
investors. If Bitcoin can maintain lower support levels and
successfully navigate September’s challenges, the market could be
poised for a robust performance in October. Featured image from
DALL-E, chart from TradingView.com
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