Bitcoin Trader Says It’s ‘Too Early’ to Call BTC Price Bottom

Bitcoin (BTC) held short-term support levels on September 17 amid depressed cryptocurrency market sentiment.

Bitcoin Fights Trend Line as Trader Confidence Fade

According to data from Cointelegraph Markets Pro and TradingView, BTC price action recovered $58,000 during the Asian trading session.

After the previous day’s selloff on Wall Street, BTC/USD appeared to be stabilizing, with the 21-day moving average (SMA) holding its ground.

“To be clear, losing the 21-day MA is not good, but in my opinion, closing above the 50-week MA is much more significant,” Keith Alan, co-founder of trading resource Material Indicators, wrote as part of a warning about X during the downtrend in the U.S. trading session.

At the time of writing, the 21-day and 50-week SMAs were $57,858 and $53,945, respectively.

Popular trader Jelle points out that the 50-week exponential moving average (EMA) continues to act as market support, as it has during the past 20 months of Bitcoin’s bull market.

“Summer bull market crashes are happening regularly,” he told X followers.

“Both the previous two super-firsts ended in the third week of October as new all-time highs. If this one continues that pattern, it will take about a month to reach a new all-time high.”

Zell echoed recent theories put forth by commentators including cryptocurrency trader, analyst and entrepreneur Michaël van de Poppe, reaffirming his belief that Bitcoin prices will recover in the coming months.

However, for trader and analyst Josh Rager, he believes it is too early to take a clear and bullish stance on BTC price performance.

“People keep calling it the ‘first high-low’ on the $BTC chart, but they were saying the same thing in June,” he said, referring to the daily timeframe.

“Bitcoin then rejected the trend line and formed a new low.”

According to the attached chart, a downward sloping channel has been forming since the latest high in March, with lower highs and lower lows regularly following.

“I’m not saying that new lows are here, but it’s a bit premature to call this a bottom. Prices have been rejected again,” he concluded.

Cryptocurrency sentiment takes a new hit

Meanwhile, Bitcoin’s price volatility has brought a new downturn to the overall cryptocurrency market sentiment.

relevant: Can Bitcoin Price Break Through $60,000 ‘Double Breakout’ Zone?

The latest data from the Crypto Fear & Greed Index showed a value of 33/100 on September 17, which is a drop of 17 points in just two days.

So, as the BTC price fell more than 4%, sentiment dropped from “neutral” to “fearful.”

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.