Bull Run? Bitcoin Bearish Signal Points to Potential Drawdown to $14,000 Level

As a seasoned researcher who has witnessed the volatile rollercoaster ride that is cryptocurrency trading, I find myself cautiously intrigued by the recent analysis of Bitcoin and Ethereum. With over a decade of observation under my belt, I have learned to never underestimate the unpredictability of this market.


Over the past week, the cost of the leading cryptocurrency, Bitcoin (BTC), has decreased by more than 5%, currently hovering around $56,500. Despite trading above $64,000 at the end of last month, a technical gauge indicates it may continue to decrease

As per well-known Bitcoin analyst Ali Martinez’s analysis, the 2-month graph of Bitcoin suggests a shift in trend from a bullish phase to a bearish one based on its Stochastic Relative Strength Index (RSI)

According to a long-term analysis of cryptocurrencies, it appears that this trend flip usually leads to a substantial drop, approximately 75.5%

A notable finding regarding Bitcoin’s 2-month chart: The Stochastic RSI recently indicated a shift from a bullish trend to a bearish one. Over the last decade, such a change typically has been followed by a substantial decline of approximately 75.50%

— Ali (@ali_charts) September 3, 2024

In 2022, an impressive instance of this trend occurred when Bitcoin was also trading above $60,000 and reached a record high beyond $69,000. After a negative RSI indication, the cryptocurrency fell dramatically to around $16,000 (its lowest point in a while), before it began to rebound

If the present negative trend continues, there’s a possibility that Bitcoin could experience a significant drop. A possible 75% decrease from its current value might lead it to approximately $14,200. It’s important to remember that during the previous bear market, Bitcoin’s price fell below $16,000 due to the collapse of a significant cryptocurrency trading platform at that time, FTX

As an analyst myself, I’d like to share a paraphrased version of recent insights from the pseudonymous crypto expert known as “Mikybull Crypto.” This individual has been discussing Bitcoin and offered some technical indicators, suggesting a possible significant price jump could occur, potentially reaching $130,000 per coin

Moreover, Benjamin Cowen, a renowned cryptocurrency expert, has pointed out an interesting correlation: Ethereum‘s monthly chart patterns mirror its performance from 2016. If this trend persists, Ethereum might close September with gains but could experience a drop later in the year. However, it may rally significantly in 2025

It’s highly possible that an increase in the value of Ethereum might be connected to an uptick in Bitcoin’s price, given their historical tendency to show strong correlation

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2024-09-05 01:43