Bitcoin Collapses 21% in 2 Months, BitMEX Co-founder Closes Short Positions

Bitcoin is deep in red, at least looking at the performance in the daily chart. Even though traders expect gains, the short-term projection is bleak, favoring sellers. If the price action aligns with last week’s performance, there will be little resistance to a dump below $49,000. In that case, not only will Bitcoin bears align with the price action of August 4 and 5, but this would also mark the beginning of another phase.

The short-term formation favors sellers. This outlook shows in the coin’s performance in the past day and week. Looking at coin trackers, Bitcoin is stable after the bounce on September 8. However, it is down 5% in the previous week. At the same time, dropping prices is negatively impacting engagement, looking at the fast-falling trading volume at around $22 billion.

Traders are actively looking at the following trending Bitcoin news:

• Despite last week’s sell-off, Arthur Hayes, the co-founder of BitMEX, thinks BTC will likely recover this week. Of note, Hayes, who is pro-BTC, closed out his short position.
• Legalizing Bitcoin mining in Russia has been seen as a genius and well-thought-out legislative move. It comes amid mounting sanctions from the international community.

Bitcoin Price Analysis

BTC/USD is under immense selling pressure.

At press time, the coin is down nearly 21% from July highs.

As it is, every high below $56,500 might offer entries to sellers targeting $50,000 in a bear-trend continuation.

Note that prices are banding along the lower BB, pointing to high selling momentum and volatility.

Moreover, prices are inside the bear bar of September 7—the breakout bar.

Accordingly, assuming Bitcoin remains below July lows, the coin would slip even lower, trending toward August lows.

Any uptick above $65,000 cancels this bearish outlook.