Sentiment surrounding Bitcoin and the crypto market in general appears to be deteriorating, with most large assets declining in recent days. On Friday, September 14th, the leading cryptocurrency fell below the $95,000 level for the first time in more than six months.
Interestingly, Bitcoin price appears to be set for another long-term negative move, as it issued a rare bearish signal for the first time in four years. Here’s how much BTC price fell the last time this happened:
If the sell signal holds, BTC price risks falling by 70%
In a recent post on social media platform A rare sell signal in BTC’s weekly supertrend has been triggered again, according to crypto experts.
The “Weekly Supertrend” is a technical indicator that uses the Average True Range (ATR) and a multiplier to pinpoint the direction of an asset’s price trend on a weekly time frame. As seen in the chart below, the indicator turns green in an uptrend and red in a downtrend, indicating a potential buy or sell signal.
Source: @TonyTheBullCMT on XIn a Friday post on X (formerly Twitter), Severino highlighted that Bitcoin has just triggered a sell signal on the Supertrend indicator on the weekly time frame. According to a prominent cryptocurrency commentator, this is the first time this signal has been issued for a major cryptocurrency since December 2021.
At the time, the sell signal signaled an abrupt end to a previous Bitcoin bull cycle, preceded by a prolonged price decline. After this signal was triggered, the price of Bitcoin fell by more than 70%, matching the significant decline following the collapse of Terra LUNA and FTX in 2022.
Historically, this sell signal foretells a potential 60-70% fall in Bitcoin price. A fall of this magnitude could take the market leader back to around $30,000 from its current price point.
However, it is worth noting that the weekly supertrend sell signal has not been confirmed yet. This indicator has been a buy signal since January 2023, but a weekly close below $96,300 could signal the beginning of a bear market for Bitcoin.
Bitcoin price overview
As of this writing, the price of BTC is sitting just above $94,400, down more than 6% in the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured images from iStock, charts from TradingView
