Analysis shows Bitcoin (BTC) hit another monthly low on September 8, with warnings that it could lose $54,000.
Moving Average “Cloud” Hangs Over Bitcoin Bull Market
According to data from Cointelegraph Markets Pro and TradingView, the price of BTC fell, reaching a high of $55,282 on Bitstamp during the Asian session.
Bitcoin looked precarious ahead of this week’s key U.S. unemployment data release, as bulls failed to stop a slow decline toward the six-month low recorded on August 5.
For popular analyst Caleb Franzen, the writing was now on the wall.
Franzen uploaded a 200-day simple moving average (SMA) and exponential moving average (EMA) chart to X, suggesting that BTC/USD is now entering a larger downtrend.
At the time of writing, the 200-day SMA and EMA are at $63,840 and $59,462 respectively, with the space between them forming the so-called “cloud.”
“If Bitcoin breaks this green range and closes below $54,000 (the low on August 5th), we will recognize that as a formal rejection and a new low for the 200-day MA cloud,” he commented.
“Rejection in the cloud is not a bullish feature and indicates a sharp change in trend.”
Nonetheless, in an additional post dated September 5, Bitcoin’s relative strength indicator (RSI) showed a bullish divergence, trending upwards while the price was falling.
“Bitcoin is in a short-term downtrend, but the bullish RSI divergence remains intact,” Franzen wrote.
Bitcoin trader warns seller who has control
Meanwhile, other popular traders have also joined in the anxiety about what the BTC price trend will be like going forward.
Related: Bitcoin Trading Volumes Drop 30% in 6 Months as BTC Price ‘Disinterest’
Arthur Hayes, former CEO of cryptocurrency exchange BitMEX, publicly announced his short position over the weekend, predicting a drop below $50,000.
Popular trader Peter Brandt offered a similar view, though not as rigorous.
Brandt, who identified a megaphone pattern appearing on the weekly chart, called for a “massive push” in price discovery amid months of sellers dominance.
“A test for the lower bound would be around 46,000,” he wrote, along with an explanatory chart.
“A massive investment in new ATHs is needed to get this bull market back on track. Selling is stronger than buying in this pattern.”
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.