Arthur Hayes Predicts Bitcoin Could Drop Below $50K Amid Trend Concerns

Bitcoin’s price targets are faltering, moving closer to last month’s lows as analysts signal strong resistance levels that could hinder recovery.

On September 8, Bitcoin (BTC) reached a new monthly low, raising alarms about the significance of maintaining a price above $54,000.

Cloud of Moving Averages Looms Over BTC Investors

Recent data from market analysis platforms showed that BTC/USD fell to $55,282 on Bitstamp during these fluctuations.

With the upcoming release of crucial unemployment data in the United States, Bitcoin’s prospects looked unstable as bullish efforts to reverse the trend have been unsuccessful, contributing to a gradual decline towards six-month lows recorded on August 5.

Caleb Franzen, a respected market analyst, indicated that signs of imminent challenges are manifesting. He shared an analysis featuring the 200-day simple (SMA) and exponential (EMA) moving averages, pointing out that BTC/USD is nearing a critical downtrend threshold.

According to Franzen’s observations, the 200-day SMA and EMA were at $63,840 and $59,462, respectively. A breakdown below $54,000 could signify a rejection and potential new lows within this trend.

“A rejection on the cloud is NOT a bullish characteristic and would represent a stark shift in trend.”

In a separate analysis from September 5, Franzen noted a bullish divergence in Bitcoin’s relative strength index (RSI), which was increasing despite the ongoing price decline.

Market Analysts Eye the Sellers’ Dominance

Other notable traders share this sense of urgency regarding the potential direction of Bitcoin’s price. Arthur Hayes, the former CEO of the BitMEX exchange, remarked on Twitter about his short position, anticipating a drop below $50,000 in the near future.

Similarly, trader Peter Brandt pointed to a megaphone pattern emerging on the weekly chart, indicating a potential significant price movement after a prolonged period of bearish trends.

Brandt suggested the possibility of testing the lower boundary, estimating a potential decline to approximately $46,000 while emphasizing the need for substantial buying pressure to reverse the current situation.

“A massive thrust into new ATHs is required to get this bull market back on track. Selling is stronger than buying in this pattern.”

This analysis does not represent investment advice or recommendations. All investment activities involve risk, and individuals are encouraged to conduct their own research prior to making any financial decisions.