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Sentiment around Bitcoin and the broader crypto market appears to be deteriorating, with most large-cap assets declining in recent days. On Friday, September 14, the flagship cryptocurrency fell below $95,000 for the primary time in over six months.
Interestingly, Bitcoin's price appears to be set for a fair longer period of negative moves as a rare bearish signal was triggered for the primary time in 4 years. Here you’ll find out how much the BTC price fell last time.
If the sell signal persists, BTC price is susceptible to a 70% drop
In a recent post on social media platform X, Chartered Market Technician Tony Severino shared an alarming prediction for the long-term Bitcoin price. According to the crypto expert, the rare sell signal within the weekly BTC super trend has began again.
The “Weekly Supertrend” is a technical indicator that uses the Average True Range (ATR) and a multiplier to find out the direction of an asset’s price trend over a weekly period. As could be seen within the chart below, the indicator turns green for an uptrend and red for a downtrend, providing potential buy and sell signals.
Source: @TonyTheBullCMT on X
In his Friday post on X (formerly Twitter), Severino highlighted that Bitcoin had just triggered a sell signal on the Supertrend indicator on the weekly timeframe. According to the outstanding crypto expert, that is the primary time this signal has sounded for the leading cryptocurrency since December 2021.
At the time, the sell signal marked the abrupt end of the previous Bitcoin bull cycle and preceded an prolonged period of downward price motion. After this signal was triggered, the value of Bitcoin fell by greater than 70%, which coincided with significant sell-offs following the collapse of Terra LUNA and FTX in 2022.
If history is anything to go by, this sell signal predicts a possible 60% to 70% drop in Bitcoin price. A drop of this magnitude could see the market leader return from its current price to around $30,000.
However, it’s price noting that the weekly supertrend sell signal is currently unconfirmed. While the indicator has been in a buy signal since January 2023, a weekly close below $96,300 could signal the beginning of a bear marketplace for Bitcoin.
Bitcoin price at a look
As of this writing, the value of BTC is just above $94,400, down over 6% within the last 24 hours.
The price of BTC within the day by day timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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