There is no denying that Bitcoin has significantly underperforming In recent months it has not reached the required level. High expectations Many bull market participants have stuck to underperformance. This underperformance has been particularly evident in the past few weeks, as the cryptocurrency has seen significant declines. Bitcoin has fallen 8.2% over the past seven days and 5.4% over the past 20 days, pushing more short-term holders into losses.
Popular cryptocurrency analyst Caleb Franzen recently shed light on the situation in a post on social media platform X (formerly Twitter). According to Franzen, Bitcoin’s disappointing performance has now put the cryptocurrency in a critical position that will determine the continuation of the bull market.
Bitcoin is at a critical stage
“This is the right moment for Bitcoin,” Caleb Franzen noted. He made the statement as part of a post in which the analyst noted that Bitcoin’s bullish structure appears to be collapsing. Known for his historically bullish stance on Bitcoin, Franzen has consistently forecasted bullish trends for the cryptocurrency.
However, his recent comments indicate a shift in his outlook as he begins to re-evaluate his recent bullish outlook in light of current market conditions.
Interestingly, he backed up his decision to temper his optimism by highlighting various trading indicators that have now turned negative for Bitcoin. Among these indicators, he highlighted the Williams %R, a momentum indicator, which has failed to show any bullish momentum over the past 60 days.
Moreover, he pointed out that there were no overbought signals, Negative slopes of critical moving averages Such as 21, 55, and 200 EMAs, and… Significant decrease in risk appetite Among investors.
Franzen emphasized that these indicators should be viewed objectively. Therefore, their current state suggests that it is time to acknowledge the current reality of Bitcoin’s price struggle. Despite this, Franzen remains cautiously optimistic about Bitcoin’s long-term potential.
However, he acknowledged that his predictions of a continued bull market that would push Bitcoin above $90,000, which he has held for the past six months, may have been overly optimistic. He also outlines how his overly bullish stance on Bitcoin has brought him massive criticism over the years.
This is the right moment #Bitcoin.
A daily close below $54K would mark another lower low after a series of lower highs.
We are below the 21, 55, 100 and 200 day moving averages.
We are below the short-term shareholder price.
We are losing the upward structure.
These are just facts. pic.twitter.com/A3xE7IwkLe
— Caleb Franzen (@CalebFranzen) September 6, 2024
What does this mean for Bitcoin?
According to Frazer, a daily close below $54,000 would mark another decline after a series of lower highs. This could lead to further declines in Bitcoin price for the rest of the weekend. Interestingly, this is in line with Latest Price Forecast Written by Arthur Hayes, who expects Price drops below $50kHayes is the co-founder of the cryptocurrency exchange BitMEX.
As of the time of writing, Bitcoin is trading at $54,280, hovering near a pivotal support level at $54,000. If the price drops below $54,000, it could drop to $54,000. Confirmation of a deeper decline direction.
Featured image from MarketWatch, chart from TradingView
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