Sentiment surrounding Bitcoin and the general cryptocurrency market appears to be deteriorating, with most large assets falling in recent days. On Friday, September 14, the flagship cryptocurrency fell below $95,000 for the first time in over six months.
Interestingly, Bitcoin price looks set to remain negative for a much longer period of time, with its first bearish signal in four years. Here’s how much BTC price fell the last time this happened:
If the sell signal holds, there is a risk of a 70% drop in BTC price.
In a recent post on social media platform A rare sell signal has disappeared again from the BTC weekly supertrend, according to a cryptocurrency expert.
“Weekly Supertrend” is a technical indicator that uses the Average True Range (ATR) and multipliers to pinpoint the direction of asset price trends over a weekly period. As you can see in the chart below, the indicator turns green in an uptrend and red in a downtrend, providing potential buy and sell signals.
Source: @TonyTheBullCMT on XIn a Friday post on X (formerly Twitter), Severino highlighted that Bitcoin had triggered a sell signal on the Supertrend indicator on weekly time frames. According to a prominent cryptocurrency expert, this is the first time this signal has been sounded for the top cryptocurrency since December 2021.
The sell signal at the time signaled an abrupt end to the previous Bitcoin bull cycle, which meant a prolonged downward price movement. After this signal, Bitcoin price fell by more than 70%, which coincides with significant selling following the Terra LUNA and FTX collapse in 2022.
If history is anything to go by, this sell signal portends talk of a possible 60-70% decline in the price of Bitcoin. A recession of that magnitude could bring the market leader back to around $30,000 from its current price range.
However, it is worth noting that the current weekly supertrend sell signal has not yet been confirmed. This indicator has been showing buy signals since January 2023, but a weekly price close below $96,300 could mark the start of a Bitcoin bear market.
Bitcoin price at a glance
As of this writing, the BTC price is just over $94,400, down more than 6% in the last 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
