Bitcoin (BTC) price is trading 10% above its eight-month low of $49,577 recorded on August 5, and traders are concerned that a new low below $52,000 could occur before a reversal occurs.
BTC/USD daily chart. Source: TradingView
On September 6, Bitcoin extended its correction, falling more than 5.9% from its high of 56,984 to reach an intraday low of 53,613.
Based on this performance, analysts believe that downside risks still remain for Bitcoin, with the $52,000 level currently seen as the key area to watch.
“#Bitcoin is pushing further towards $52,000 lows,” popular trader Jelle wrote on X on September 6.
The gel was responding to questions about the health of the labor market as bitcoin prices plunged after lower-than-expected U.S. jobs data was released.
According to analysts, the sell-off in Bitcoin over the past few days has pushed the price below key support levels, including the psychological level of $58,000, supported by the 200-day simple moving average.
The price is currently trading below this supply zone, and Jelle believes that bulls need to aggressively defend the July 5 low of $52,000 to prevent BTC from falling further.
“Rektember is going full force.” BTC/USD chart. Source: Jelle
Meanwhile, fellow analyst Daan Crypto Trades has proposed two scenarios based on the Fibonacci levels from the August 5 swing low of $49,577 to the local high of $65,103 reached on August 25. The first scenario is that Bitcoin price bounces from the 61.8% Fibonacci correction level of $54,604.
The second view includes a break below the $54,000 support level to continue the downtrend. This could provide a perfect entry point for a long position at $52,400, which is accommodated by the 78.6% retracement level.
BTC/USD daily chart. Source: Daan Crypto Trade
MN Consultancy founder Michael van de Poppe said the Bitcoin price could drop to the $53,000 to $54,000 support zone before “surging again.”
According to van der Poppe, for this to happen, the Bitcoin price would need to quickly recover to the $56,000 level.
source: Michael Van de Poppe
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Bitcoin UTXO Revenue Decrease
Anonymous analyst Kyle Doofs shared a CryptoQuant chart showing that the share of Bitcoin’s unspent transaction outputs (UTXOs) in revenue has been declining since mid-July, suggesting profit-taking activity is occurring.
Bitcoin UTXO refers to the amount of cryptocurrency left on the network after transactions. Analyzing this metric is important for understanding investor behavior over different time periods.
“Bitcoin UTXO yields have fallen to 68.5%, the lowest since October 2023,” Kyledoops explained in a post on X on September 6.
“This decline indicates selling pressure from traders taking profits.” Percentage of Bitcoin UTXO in profit. Source: CryptoQuant
Typically, reducing the yield on Bitcoin UTXOs will allow BTC to rise as seller exhaustion begins.
The last time UTXO yields reached this level was in January 2023, before Bitcoin’s price rose 273% from $26,700 to $73,000, hitting an all-time high.
“Historically, these declines have been preceded by significant price surges. Bitcoin’s price has previously risen 273% following a similar decline.” 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.