Crypto Market Sentiment Drops, Bitcoin Faces Potential Correction
Crypto market sentiment has taken a nosedive, falling to a one-month low, with analysts warning of a potential Bitcoin price correction below $50,000.
Crypto Fear & Greed Index Plunges
The Crypto Fear & Greed Index, a gauge of market sentiment, has plummeted to 22, a level last seen in early August. This suggests that investors are feeling pretty scared about the current market conditions.
Analysts Predict Bitcoin Correction
Arthur Hayes, former CEO of BitMEX, believes Bitcoin could drop below $50,000 this weekend. He’s even taken a short position, which means he’s betting on Bitcoin’s price to go down.
Other analysts like Axel Adler, a CryptoQuant author, have observed that the index fell to 17 during Bitcoin’s drop to $49,000.
September’s Historical Downside
September has historically been a month of volatility for Bitcoin, with average returns hovering at -4.69%.
Crypto analyst Rekt Capital notes that Bitcoin’s current September performance aligns with previous halving cycles, with a decline of 6.19% for the month, echoing the single-digit drops experienced in 2022, 2021, 2020, 2018, and 2017.
Possible Cup and Handle Pattern
Despite the bearish outlook, some analysts like Mags see a potential cup and handle pattern forming for Bitcoin. This bullish pattern could indicate an extension of the uptrend.
Bitfinex Analysts Warn of Potential Correction
Bitfinex analysts have also shared their concerns about a potential correction below $50,000, before the real bull rally begins. They believe that this correction is based on the historical trend of cycle peaks reducing by 60-70% with each cycle, along with the decline in average bull market corrections.
It’s important to remember that the crypto market is inherently volatile, and these are just predictions based on historical trends and current market conditions. It’s always advisable to conduct thorough research and manage your risk carefully before making any investment decisions.
