Bitcoin Bears Target $50,000: Why Are Large Whales Fast Accumulating?

Bitcoin is down at press time, struggling for momentum. Even though traders are confident of what lies ahead, the short-term trend is bearish for the world’s most valuable coin. A close below $56,500 may trigger panic selling, forcing the coin even faster to $50,000 or worse. Aggressive traders, considering the structure of BTC at spot rates, might look at shorting entries. However, if there is an expected price expansion above $60,000, momentum could start building up, relieving traders.

At press time, BTC is down, shedding nearly 5% in the past day and week. Meanwhile, the average trading volume in the last 24 hours is at $33 billion; a slight improvement. Overall, the prevailing sentiment swings in favor of sellers. As fear grips the market, bears might take advantage and further squeeze shaken bulls, accelerating the downtrend.

The following trending Bitcoin news events are worth monitoring:

• Despite the market shakeout, holders of between 100 and 1,000 BTC are unfazed. According to trackers, it appears that this cohort is actively accumulating, taking advantage of low prices.
• One analyst is also convinced that as long as prices remain below $68,000, bears have the upper hand. Ideally, the leg up above the resistance trend line must be with rising trading volume, pointing to trader engagement.

Bitcoin Price Analysis

BTC/USD is within a bearish formation at press time.

The retest and breach of $56,500 means the coin is changing hands below the July low.

Therefore, in a bear breakout formation, active traders can consider shorting on every attempt higher, targeting $50,000.

This formation will align with the sellers of August 27 and September 1.

Overall, this will also be in sync with early August lows, confirming the strength of bears.

If there is an unexpected recovery, a close above $60,000 would assuage fears, strengthening bulls.