Bitcoin Selling-Off: Network Activity, Volatility Shrinks As BTC Bears Eye $50,000
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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