Bitcoin’s (BTC) sentiment appears to have turned bearish as analysts eye sub-$50,000 price targets, preparing for a crash. The leading cryptocurrency shows weakness at resistance, potentially making another lower high – continuing in a downtrend.
Since reaching $73,800 and making a new all-time high (ATH) in March 2024, Bitcoin has clearly displayed a downtrend. In this context, Alan Santana, a reputable analyst, warned his followers to “prepare for a crash” down to $40,000.
“Lower highs is a bearish signal. Bitcoin has also been printing lower lows. A lower high leads to a lower low in the bigger structure. This means that Bitcoin dropping now, as it is expected, would send prices below 49K. The next fib. level below 49,000 sits around 40,000 – 43,000. That’s the main target for this drop but it can go lower. Prepare for the crash.”
– Alan Santana
According to Santana, Bitcoin could have made another lower high in this structure, getting ready for a flash crash.
Analysts weigh in on Bitcoin’s September Effect crash
Historically, Bitcoin has been a victim of the “September Effect,” having monthly average losses in all “Septembers” since 2013. The bearish sentiment is true among prominent analysts who have recently doubled down on previous analysis warning of a BTC crash incoming for this month.
Namely, The Crypto Cat and Digital Nomad Woman also shared a similar forecast on X – highlighting the lower highs. Meanwhile, Ali Martinez commented on the growing open interest dominated by long positions, warning of a long squeeze.
Nearly $2 billion in #Bitcoin futures contracts opened in just 48 hours. We could be looking at a potential long-squeeze! 👀 pic.twitter.com/gpxGMyqFBu
— Ali (@ali_charts) September 20, 2024
Indeed, Alan Santana had made a previous analysis warning of the same peril, as Finbold reported last week. Moreover, Credible Crypto, a known long-term bull trader, shared a similar insight of a dominantly bearish short-term chart.
Dormant Bitcoin whales, which have been holding since “Satoshi Nakamoto’s time,” have just moved nearly $16 million worth of BTC, making waves, as we published earlier this morning. Santana mentioned this event in one of his recent updates on the aforementioned anylisis.
“Many ancient accounts are waking up, several today, all more than 15 years dormant; and this is always a bearish signal. This signal is stronger than “Michael Saylor bought Bitcoin,” to signal that a drop is coming… Watch out.”
– Alan Santana
As things develop, traders should remain cautious and understand the inherent volatility present in the cryptocurrency market. Nevertheless, contrarian traders could see the apparent consensus on an incoming crash as an opportunity to accumulate.