Bitcoin, the world’s most valuable cryptocurrency, is currently facing a significant downward trend in its price. The recent price action on September 11 indicates that BTC is now trading at $25,135. This marks a slight improvement from its earlier drop to the lowest point in the second half of 2023, which was recorded at $24,951. The unexpected dump in the early trading hours of the New York trading session contributed to this decline.
The crash on September 11 caused Bitcoin to drop below the consolidation that had been observed in the past few trading days. The bearish breakdown, as revealed by the price action, canceled the bulls of August 31 and introduced increased selling pressure from August 17. This sell-off resulted in the formation of a wide-ranging bear candlestick, which still continues to print and is characterized by relatively high trading volume. This high level of participation indicates that BTC will likely continue to decrease, following the direction defined by the conspicuous bear bar observed on August 17, when the coin experienced a 12% fall and dropped below the $28,700 support level.
By analyzing the price action, it becomes clear that Bitcoin bears are currently in control and are actively reversing the gains that were achieved between June and July 2023. During that period, Bitcoin prices witnessed a rise from around $20,000 to a high of $31,800 by the end of July 2023. However, these prices eventually peaked and started to decline as talks of a spot Bitcoin Exchange-Traded Fund (ETF) faded following the Securities and Exchange Commission’s (SEC) decision to delay their decision.
Taking into consideration the current spot rates, it is evident that Bitcoin has experienced a 20% decline from its July 2023 lows. However, it is still trading at critical Fibonacci retracement levels from the resistance levels observed between June and July 2023. While it is common for BTC and other cryptocurrencies to go through deep retracements, there is a possibility that the coin may find support at the $25,000 mark. Nevertheless, if the selling pressure intensifies and continues to follow the bear bar observed on August 17, it could result in further losses, pushing BTC towards its June 2023 lows at approximately $20,000.
Analyzing the technical candlestick arrangements, one analyst highlights that the coin closed below the $25,600 mark after the conclusion of last week’s trading session. This dip in price has led to the appearance of a “Death Cross” pattern on the Ichimoku Cloud indicator. History has shown that Bitcoin prices tend to experience a significant decline when this pattern forms, followed by a rebound over several weeks. Previous instances of the “Death Cross” occurred in June 2021 and January 2022, resulting in BTC dropping by 19% and 23%, respectively. If the “Death Cross” pattern manifests itself again, it is possible that BTC may experience a 21% decline, pushing the coin back to the $20,000 level or even its June 2023 lows. However, before this scenario unfolds, Bitcoin will have to break through strong support levels at $25,600, $24,000, and $23,200, before potentially retesting the $20,300 zone.
Bitcoin is currently facing a significant decline in its price, with bears taking control over the market. The recent sell-off and the formation of a wide-ranging bearish candlestick indicate the presence of increased selling pressure and a potential continuation of the downward trend. Bitcoin’s previous gains achieved between June and July 2023 are being reversed, and the cryptocurrency may further decline if support levels are breached. The appearance of a “Death Cross” pattern on the Ichimoku Cloud indicator adds to the bearish sentiment and suggests a potential decline in the near future. As the market continues to unfold, it is important for Bitcoin traders and investors to closely monitor the price action and be prepared for potential further losses.
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