Potential Lowest Levels at 45,450 for the Bitcoin Price

Bitcoin’s price is currently 22% below its all-time high, with many analysts predicting that it could bottom out between $45,450 and $50,000. 

Source: fortune.com

Over the past week, Bitcoin has fallen by more than 3%, erasing most of the gains made since the August 5 low of $49,500. The cryptocurrency has also seen a 20% decline over the last 90 days, with its daily trading volume dropping by 32% during the same period. Several indicators suggest a potential for a deeper correction, making a rapid recovery from the current levels seem unlikely.

Analysts Suggest That Bitcoin Could Fall To $50,000

The recent downtrend in Bitcoin has led analysts at 10x Research to forecast that prices could drop into the low $50,000 range. Markus Thielen, an analyst at 10x Research, presented a chart indicating that Bitcoin’s recent correction caused it to fall below the ascending trendline of an asymmetrical triangle pattern. This breakdown suggests a potential retest of the August 5 lows, which were below $50,000. Similarly, Michael Van de Poppe, founder of MN Capital, has set a target around the same level. Van de Poppe observed that Bitcoin’s decline below the August 15 low of $56,000 aimed to capture demand-side liquidity beneath this level. However, the anticipated upward rebound did not materialize, raising the possibility of further declines to $53,000 or even $49,000 before a potential recovery. Meanwhile, analysts expect Bitcoin to drift towards $51,000, a level considered both the market mean and a historic support point.

Bitcoin Price Drops Below Critical Support Level Of $58,000

Bitcoin’s decline from a high of $65,000 on August 25 to a three-week low of $55,555 on September 4 has seen it fall below the 200-day exponential moving average (EMA) once again. Famous trader Skew observed that this price movement led to increased ask bids around the $58,000 level, indicating that this price point acted as a strong resistance for Bitcoin bulls in the short term. As of the latest update, the 200-day EMA stood at $59,533, still above the current spot price. 

The 200-day EMA typically serves as a crucial support line during bull markets, and losing it has exposed Bitcoin to greater risks. Data from the on-chain data aggregator IntoTheBlock shows that the most probable path for Bitcoin is downward. According to the In/Out of the Money Around Price (IOMAP) chart, Bitcoin faces significant resistance on the upside. The immediate resistance zone is between $57,928 and $59,668, where approximately 929,367 BTC were previously purchased by around 1.98 million addresses. This suggests that Bitcoin’s potential for upward movement may be limited, with a higher likelihood of deeper corrections.

Bitcoin Bear Flag Patterns Suggest A Downside Target Of $45,450

From a technical standpoint, Bitcoin's recent price action has created a bear flag pattern. This pattern typically emerges after a sharp decline, followed by consolidation within an upward-sloping range. Bear flags generally resolve when the price breaks below the lower trendline, potentially dropping by a distance equivalent to the height of the previous downtrend. This pattern suggests a potential lower target for Bitcoin at around $45,450, a level last seen on February 9. Furthermore, Bitcoin’s daily relative strength index (RSI) is currently at 44, indicating a negative momentum. This suggests that market conditions still favor a downward move, increasing the likelihood of Bitcoin reaching its bear flag target.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.