Crypto market enters 'extreme fear' as analysts warn of Bitcoin below $50K
2024-09-06

Crypto market sentiment has dropped to an over one-month low, as analysts warn of a potential Bitcoin BTCUSD price correction below $50,000 as soon as this weekend.
Crypto trader sentiment drops to ‘extreme fear’
The Crypto Fear & Greed Index, a multifactorial measure of crypto market sentiment, fell to a one-month low of 22, last seen at the beginning of August.
Cointelegraph
The index fell to 17 back when Bitcoin BTCUSD price fell to $49,000, shared analyst and CryptoQuant author Axel Adler, in a Sept. 6 X post:
Cointelegraph
The sentiment drop comes amidst concerns of a September correction below $50,000.
Bitcoin could risk a correction below this key price level as soon as this weekend, warned Arthur Hayes, former CEO of crypto exchange BitMEX.
September BTC price dip in line with halving cycle
September has historically been a month of downside volatility, with average Bitcoin returns at -4.69%, making it the most bearish month based on average returns, according to CoinGlass data.
Cointelegraph
Thus, the current correction remains in line with previous Bitcoin halving bull cycles, wrote crypto analyst Rekt Capital, in a Sept. 6 X post:
This could bring more short-term downward pressure, added the analyst, sharing the below chart in a Sept. 6 X post:
Cointelegraph
Zooming out, this correction could precede a breakout due to an emerging cup and handle pattern, a bullish price setup that signals the extension of an uptrend.
The bullish pattern was shared by popular crypto trader Mags, in a Sept. 5 X post:
Cointelegraph
Bitfinex analysts have also warned of a potential correction below $50,000, before the real bull rally. The analysts told Cointelegraph:
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