Market update: What’s the Outlook for the King of Cryptocurrencies?

September 9th, 2024

Bitcoin’s price has been volatile, recently spiking to $58,000 before retreating to $56,600 at the time of writing. After reaching its all-time high (ATH) of $73,740 in March, BTC has now broken below multiple support levels. Despite its current rebound from the $52,000 mark touched earlier in September, Bitcoin’s short-term momentum appears bearish.

The daily chart shows that Bitcoin was rejected from the 200-day moving average, which hovers around the $64,000 resistance level. Since this rejection, BTC has lost several key support levels and is now exhibiting a Descending Channel Pattern — a bearish formation that signals potential further declines. While there has been a slight recovery, the bearish sentiment persists, and Bitcoin must surpass the $64,000 resistance zone and the 200-day MA to signal a return to bullish momentum.

Analyzing the recent price action, Bitcoin has established a downward trend with lower highs and lower lows within the channel. However, since hitting around $52,800 on Friday the 6th September, when the market has created the highest lows of the short term trend, after the price has confirmed a higher high, indicating the potential for a short-term recovery.