Bitcoin Selling-Off: Network Activity, Volatility Shrinks As BTC Bears Eye $50,000
Bitcoin is trading below July lows. As sellers double down, BTC can easily slide to as low as $50,000 or August 2025 lows
Bitcoin is down when writing, slipping below July 2024 lows. At this pace, there is no discounting the possibility of the world’s most valuable coin retesting August lows in a bear trend continuation pattern. There are several reasons to support this bearish outlook. First, the coin is within a bear breakout following losses early this week. Second, despite the rejection of lower prices on September 4, the continuation of the sell-off yesterday means sellers are determined. All the same, with traders upbeat, a revival above $60,000 would be a timely shot in the arm.
The failure of bulls to step in means the downtrend remains. Coin trackers point to weakness, at least based on the performance. Bitcoin is down 1% in 24 hours, pushing weekly losses to over 4%. At the same time, the sell-off has decent trading volume, averaging nearly $30 billion when writing.
Traders are watching the following trending Bitcoin news:
- Amid the drop, Bitcoin volatility is falling in tandem. The only time this will change is if prices either rapidly expand above $60,000 or dump to $50,000.
- Trackers also note that the Bitcoin active user addresses count is at 2024 lows. Surprisingly, this risk-on attitude is when the coin is trading less than 20% from all-time highs. Activity will pick up, signaling investor interest once there is a surge in prices above local resistances.
Bitcoin Price Analysis
BTC/USD is within a bearish formation, per the formation in the daily chart.
At press time, traders can consider aligning with the trend.
This means shorting on every attempt higher, ideally within the $57,000 and $58,000 zone.
The first target would be $49,000.
However, if sellers are dominant, the coin may drop even lower, retesting $45,000.
All the same, the outlook will change assuming Bitcoin picks up momentum, racing above $60,000.
In that case, BTC may find the much needed support for another uptick to $66,000.
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