Bitcoin continues to face bearish pressure. As of the latest data, Bitcoin is trading at $56,057, marking a 1.17% drop in the last 24 hours. However, this agter a recovery from a volatile day of trading that saw the price dip as low as $55,262 at one point today. The current market cap of Bitcoin stands at $1.1 trillion. Trading volume over the last 24 hours has reached $32.3 billion, up 5%.
Despite these seemingly positive indicators, the market is grappling with bearish sentiment fueled by outflows from Bitcoin ETFs. On September 5, Bitcoin exchange-traded funds recorded a total outflow of $211 million, a shift in investor confidence. The $FBTC fund bore the brunt of these withdrawals, with $149 million exiting the fund. Other major ETFs, including $BITB and $GBTC, also experienced substantial outflows of $30 million and $23.2 million respectively.
Adding to the market uncertainty, cryptocurrency veteran Arthur Hayes has made a bold prediction that Bitcoin could fall below $50,000. This forecast comes as Hayes publicly announced his short position on Bitcoin, citing that the asset is "looking heavy" and aiming for sub-$50,000 levels.
From a technical view, Bitcoin has been in a bearish trend since reaching a recent high of $65,000 on August 25. The asset has been consolidating at a support level from a mini-bullish flag for several days, retesting a broken-out pattern inside the main bullish flag at $57,000. However, this support was breached, leading to a drop to the $56,000 level one day ago.
Currently, Bitcoin is trading below the $56,000 support level, having broken down below both the mini bullish flag and the $56,000 support. The bearish pressure suggests a potential further drop to $52,000 where it might find support at the base of the major bullish flag. Key technical indicators also show a bearish outlook. The daily RSI sits at 38, indicating strong selling pressure.
From a recent tweet, an analyst points to an inverted expanding triangle or megaphone pattern forming on the charts. This pattern suggests that a test of the support could push Bitcoin down to around $46,000. To reverse this bearish trend and reignite the bull market, Bitcoin would need to make a significant thrust into new all-time highs.
The current market dynamics reflect a complex interplay of technical factors and market sentiment. The recent ETF outflows suggest waning institutional interest, which could further exacerbate selling pressure. All eyes will be on Bitcoin's next move. Will it find support and bounce back, or will bearish predictions come to fruition?