Sentiment around Bitcoin and the general cryptocurrency market appears to be heating up, with most large-cap assets declining in recent days. On Friday, September 14, the major cryptocurrency fell below the $95,000 level for the first time in more than six months.
Interestingly, Bitcoin price appears poised for a longer period of negative movement, as a rare bearish signal has been triggered for the first time in four years. Here’s how much BTC’s price fell the last time this happened.
BTC price is at risk of falling by 70% if the sell signal persists
In a recent post on social media platform X, Certified Market Technician Tony Severino subscriber A worrying forecast for the price of Bitcoin in the long term. According to a cryptocurrency expert, the rare sell signal on BTC’s weekly supertrend has faded once again.
The “Weekly Supertrend” is a technical indicator that uses the Average True Range (ATR) and a multiplier to determine the direction of an asset’s price trend over a weekly time frame. As shown in the chart below, the indicator turns green for an uptrend and red for a downtrend, providing potential buy and sell signals.
Source: @TonyTheBullCMT on X
In his Friday post on X (formerly Twitter), Severino highlighted that Bitcoin had just triggered a sell signal on the Supertrend indicator on the weekly time frame. According to a leading cryptocurrency expert, this marks the first time this signal has been released for the leading cryptocurrency since December 2021.
At the time, the sell signal marked an abrupt end to Bitcoin’s previous bull cycle, which preceded a long period of bearish price action. The price of Bitcoin fell by more than 70% after the activation of this signal, coinciding with significant selling after the collapse of Terra LUNA and FTX in 2022.
If history is any indication, this sell signal tells the story of a potential 60-70% decline in the price of Bitcoin. A pullback of this magnitude could take the market leader back around $30,000 from its current price point.
However, it is worth noting that Weekly super trend sell signal Currently it is still uncertain. While the indicator has been in a buy signal since January 2023, a weekly price closing below $96,300 could signal the beginning of a bear market for Bitcoin.
Bitcoin price at a glance
As of this writing, Bitcoin’s price is just above $94,400, representing a decline of over 6% over the past 24 hours.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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