BITCOINS KEY MOMENTUM METRIC JUST FLASHED BEARISH WITH BTC PRICE PINNED UNDER $50K

The cryptocurrency market, known for its volatility and rapid shifts, is once again facing a potential downturn. Bitcoin price is showing signs of weakening, as technical patterns and market data point to a possible sharp downturn. As of J, BTC s price has dropped by over 6% since May 23 and is trading above $104,000. Momentum indicators, volatility data, and futures positioning suggest bearish pressure is building across multiple timeframes.Bitcoin, the undisputed king of crypto, has been struggling to break past the psychological barrier of $50,000, and a confluence of factors suggests that the path ahead may not be smooth.A critical momentum indicator, one closely watched by seasoned traders and analysts alike, has just flashed a bearish signal, adding to the growing concerns about the short-term trajectory of BTC.This bearish divergence, coupled with other technical indicators, paints a picture of weakening buying pressure and a possible price correction.While Bitcoin has shown resilience in holding above $30,000, fueled by the narrative of being an inflation hedge for accredited investors, the underlying momentum appears to be fading. Analyzing BTC s Recent Price Action And Key Indicators. On the 4-hour chart, Bitcoin has displayed strong bearish momentum below the 100-day Simple Moving Average (SMA) following its failure to break above the $60,152 mark. The price is now attempting to fall toward the $53,541 mark.This article will delve into the specifics of this bearish signal, explore the various factors contributing to the current market sentiment, and offer insights into what traders and investors should be watching in the coming days and weeks. The relative strength index is making lower highs while correcting from its overbought area. The run-up in the Bitcoin (BTC) price toward $50,000 last week risks exhaustion due to a mismatch between the cryptocurrency's price and momentum trends.So it appears the Bitcoin's price and relative strength index (RSI) have been moving in the opposite direction MoreIs this a temporary setback, or a sign of a deeper correction to come?Let's dive in and analyze the current state of Bitcoin.

Understanding the Bearish Divergence Signal

One of the most prominent warning signs is the emergence of a bearish divergence on Bitcoin's daily chart.This technical pattern, identified by analysts like Bluntz, suggests that the upward momentum of Bitcoin's price is weakening, even as the price itself remains elevated or continues to climb slowly. In doing so, even a strong push higher in the BTC/USD bids has coincided with lower peaks in momentum, suggesting that the pair's upside momentum is weakening out. Bearish divergence. A normal RSI momentum tends to tail the price action. That said, it rises when the price rises and falls when the price drops. But in some cases, the RSI deviatesLet's break down what this means in simpler terms:

• Price Action: Bitcoin's price has been consolidating upwards, particularly after a period of downward movement. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50K Get link; Facebook; Twitter; Pinterest; Email; Other Apps; AugIt's attempting to break through key resistance levels, but struggling to maintain sustained upward momentum.
• Momentum Indicators: The Relative Strength Index (RSI), a popular momentum indicator, is showing a different story. Bitcoin s key momentum metric just flashed bearish with BTC price pinned under $50KInstead of mirroring the price's upward trend, the RSI is making lower highs.
• The Divergence: This discrepancy between price action (higher highs or sideways movement) and momentum indicators (lower highs) is what constitutes a bearish divergence. The bearish divergence signal comes as Bitcoin holds strongly above $30,000, amidst anticipation that it would become a hedge of choice among accredited investors against inflationary pressures.It signals that the buying pressure behind the price increase is waning, potentially foreshadowing a reversal.

Imagine a car trying to accelerate uphill.The speedometer (price) might still be showing an increase in speed, but the engine's power (RSI) is actually decreasing. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under blockstarcrypto cryptocurrency crypto cryptotrading cryptonews cryptomemes blockchain bitcoin etherium dogeEventually, the car will likely stall or begin to roll backward. The run-up within the Bitcoin (BTC) worth towards $50,000 final week dangers exhaustion because of a mismatch between the cryptocurrency's worth and momentumSimilarly, a bearish divergence in Bitcoin suggests that the current price increase may be unsustainable and a correction could be imminent.

CryptoQuant's Inter-Exchange Flow Pulse (IFP) Flashes Red

Adding to the bearish narrative, CryptoQuant's Inter-Exchange Flow Pulse (IFP), a metric that tracks the flow of Bitcoin between cryptocurrency exchanges, has also flashed a warning signal. BTC/USD 日线图表现出看跌背离 来源：TradingView.com 这一下行信号出现时，比特币正努力突破5万美元上方的看涨区间。 截至周日，这一基准加密货币的交易价格为 美元，较8月3日达到的三个月高点 美元下跌了4.19%。A red IFP signal often precedes bearish shifts in the market.This metric attempts to gauge the buying and selling pressure across different exchanges.A high IFP suggests a large inflow of Bitcoin into exchanges, potentially indicating increased selling pressure, while a low IFP suggests the opposite.

The flashing red IFP indicates that more Bitcoin is flowing into exchanges than is flowing out, potentially signaling that investors are preparing to sell their holdings.This increased supply can exert downward pressure on the price, further supporting the bearish outlook.Investors should closely monitor the IFP to gauge the potential for increased selling pressure in the short term.

The Exhaustion of the Run-Up Towards $50,000

The recent attempt by Bitcoin to surge towards $50,000 appears to have run out of steam.Analysts point to a mismatch between the cryptocurrency's price and its momentum trends as a key reason for this exhaustion. They are formed when price consolidates upwards after a strong downtrend, but fails to break a key support level. Here s a different perspective of BTC with the same conclusion: April trend line break plus failure to hold $106,600 plus a potential bear flag below resistance. $97,000-$98,000 is the objective. $106,600-$106,800 is myAs mentioned earlier, the RSI has been moving in the opposite direction of the price since late July.This divergence highlights the fact that the upward price movement was not supported by strong buying pressure, making it vulnerable to a reversal.

Furthermore, Bitcoin's inability to decisively break through the $50,000 resistance level suggests a lack of conviction among buyers. BTCUSD Bitcoin Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50K. The relative strength index is making lower highs while correcting from its overbought area.Each failed attempt to breach this level weakens the bullish sentiment and increases the likelihood of a correction. The analyst, known by the pseudonym Bluntz, noted on social media that Bitcoin s daily chart is flashing a bearish divergence. This technical pattern typically signals that buying pressure is fading, even if prices continue to climb or move sideways a potential precursor to a short-term reversal.Traders who were hoping for a breakout above $50,000 may now be taking profits, adding to the selling pressure.

Analyzing Key Bitcoin Price Levels and Technical Indicators

Beyond the bearish divergence and IFP signal, several other technical indicators point to potential downside risks for Bitcoin.Here's a closer look at some key price levels and patterns:

• Failed Break Above $60,152: On the 4-hour chart, Bitcoin struggled to break above the $60,152 mark, and this failure has led to strong bearish momentum below the 100-day Simple Moving Average (SMA).
• Target of $53,541: The price is now attempting to fall toward the $53,541 mark, which represents a significant support level. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50K 6:51 AM cointelegraph, crypto, crypto news The relative strength index is making lower highs while correcting from its overbought area.A break below this level could trigger further downside.
• Trend Line Break: One analyst pointed out an April trend line break, coupled with a failure to hold $106,600 (adjusting for different exchanges and currency pairings, this level is roughly equivalent to $50,000 based on previous price data), and the potential formation of a bear flag below resistance. Bitcoin s key momentum metric just flashed bearish with BTC price pinned under $50K . Buy, Sell, Trade Bitcoin with Credit Card 100 Cryptocurrencies @ BEST rates from multiple sources, Wallet-to-Wallet, Non-Custodial!This suggests a potential target of $97,000-$98,000 (again adjusting for relative price levels).

These technical patterns suggest that Bitcoin is currently in a vulnerable position.Traders should be closely monitoring these key levels to anticipate potential price movements.A break below $53,541 could trigger a cascade of sell orders, pushing the price even lower.

The Role of Moving Averages

Moving Averages are crucial tools in identifying potential support and resistance levels. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50KThe 100-day SMA, in particular, is a widely watched indicator. In doing so, even a strong push higher in the BTC/USD bids has coincided with lower peaks in momentum, suggesting that the pair s upside momentum is weakening out. Bearish divergence. A normal RSI momentum tends to tail the price action. That said, it rises when the price rises and falls when the price drops. But in some cases, the RSIWhen the price falls below this average, it can signal a shift in momentum from bullish to bearish.Bitcoin's struggle to stay above the 100-day SMA on the 4-hour chart reinforces the bearish outlook.

Has Bitcoin Lost Key Support?

Bitcoin has indeed lost key support levels after days of uncertainty regarding its short-term direction. The run-up in the Bitcoin (BTC) price toward $50,000 last week risks exhaustion due to a mismatch between the cryptocurrency s price and momentum trends. So it appears the Bitcoin s price and relative strength index (RSI) have been moving in the opposite direction since late July. In doing so, even a strong push higher in theThe inability to maintain a position above $50,000 has led to increased selling pressure and a test of lower support zones.The question now is whether Bitcoin can find sufficient buying support to reverse the current downward trend.

Understanding the Relative Strength Index (RSI)

The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The run-up in the Bitcoin (BTC) price toward $50,000 last week risks exhaustion due to a mismatch between the cryptocurrency's price and momentum trends. So it appears the Bitcoin's Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50KIt ranges from 0 to 100. Share this post. EvrySource. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50KTraditionally, RSI readings above 70 are considered overbought, while readings below 30 are considered oversold.

In the case of the current bearish divergence, the RSI is making lower highs even as the price makes higher highs (or moves sideways).This suggests that the buying momentum is weakening, and the price is likely to correct downward.

How to Interpret RSI Divergence

Interpreting RSI divergence requires careful observation: * Identify the Trend: Determine whether the overall trend is uptrend or downtrend. * Look for Divergence: Compare the price chart with the RSI chart. Bitcoin's key momentum metric just flashed bearish with BTC price pinned under $50K WikiBit The relative strength index is making lower highs while correcting from its overbought area.If the price is making higher highs, but the RSI is making lower highs, it's a bearish divergence.Conversely, if the price is making lower lows, but the RSI is making higher lows, it's a bullish divergence. * Confirmation: Wait for confirmation before taking action. Top cryptocurrency prices and charts, listed by market capitalization. Free access to current and historic data for Bitcoin and thousands of altcoins.Confirmation could be a break below a key support level or a reversal candlestick pattern.

Potential Catalysts for Further Downside

While technical indicators paint a bearish picture, several potential catalysts could further accelerate the downside for Bitcoin:

• Regulatory Concerns: Increased regulatory scrutiny from governments around the world could dampen investor sentiment and trigger sell-offs.
• Macroeconomic Factors: Rising interest rates or a strengthening US dollar could negatively impact Bitcoin's price, as investors shift towards less risky assets.
• Black Swan Events: Unexpected events, such as a major security breach or a significant whale sell-off, could trigger a panic in the market.

What Should Traders and Investors Do?

Given the current bearish signals, traders and investors should exercise caution and consider the following strategies:

• Manage Risk: Implement stop-loss orders to limit potential losses.
• Reduce Exposure: Consider reducing your Bitcoin holdings, especially if you have a low-risk tolerance.
• Diversify Your Portfolio: Don't put all your eggs in one basket. Bitcoin is currently trading at $96,300, slipping 0.29% in the past 24 hours as traders remain cautious. A new warning signal has emerged, with CryptoQuant s Inter-Exchange Flow Pulse (IFP) metric flashing red a pattern often preceding bearish shifts.Diversify your investments across different asset classes.
• Stay Informed: Keep up-to-date with the latest market news and technical analysis.
• Wait for Confirmation: Avoid making hasty decisions based solely on technical indicators.Wait for confirmation of the bearish trend before taking significant action.

The Importance of Long-Term Perspective

While the short-term outlook for Bitcoin may appear bearish, it's important to remember that Bitcoin has a history of overcoming challenges and experiencing significant price appreciation over the long term.Many proponents still believe in Bitcoin's potential as a store of value and a hedge against inflation. The run-up in the Bitcoin (BTC) price toward $50,000 last week risks exhaustion due to a mismatch between the cryptocurrency s price and momentum trends. So it appears the Bitcoin s price and relative strength index (RSI) have been moving in the opposite direction since late July.Therefore, a long-term perspective is crucial for navigating the current market conditions.

Dollar-Cost Averaging (DCA) Strategy

For long-term investors, the Dollar-Cost Averaging (DCA) strategy can be a useful approach. A recent run-up in the Bitcoin (BTC) market towards $50,000 risks exhaustion due to a mismatch between the cryptocurrency's price and momentum trends. Please note, this is a STATIC archive of website cointelegraph.com from, cach3.com does not collect or store any user information, there is no phishing involved.DCA involves investing a fixed amount of money at regular intervals, regardless of the price. The coming days will be crucial in determining whether BTC can regain momentum or if the bearish sentiment will persist, keeping prices under pressure. Bitcoin Drops Below $90K As Market Hits New Lows. Bitcoin has lost key support after days of uncertainty regarding its short-term direction.This strategy helps to smooth out the volatility and reduce the risk of buying at the peak.

For example, instead of investing a lump sum of $10,000 in Bitcoin, you could invest $1,000 per month for 10 months.This allows you to accumulate Bitcoin over time, regardless of short-term price fluctuations.

Bitcoin's Current Trading Price

As of the latest data, Bitcoin is trading around $96,300, which is a decrease of 0.29% in the past 24 hours.Traders are exhibiting caution as they monitor the market signals and key support/resistance levels.

Alternative Perspectives on Bitcoin

While the bearish outlook is gaining traction, it's important to acknowledge that not everyone agrees with this assessment.Some analysts argue that the current pullback is simply a healthy correction after a period of strong growth and that Bitcoin will eventually resume its upward trajectory.Others point to the increasing adoption of Bitcoin by institutional investors as a sign of long-term strength.

Volatility Data and Futures Positioning

Analyzing volatility data and futures positioning can provide further insights into the market sentiment.Increased volatility typically indicates higher risk, while bearish positioning in the futures market suggests that traders are betting against Bitcoin's price.

A combination of high volatility and bearish futures positioning could signal a further decline in Bitcoin's price.However, it's important to note that futures markets are often influenced by speculative trading and may not always accurately reflect the long-term outlook.

Conclusion: Navigating the Bitcoin Landscape

The current market environment for Bitcoin is undeniably complex and fraught with uncertainty.The bearish divergence signal, coupled with the red IFP indicator and the exhaustion of the run-up towards $50,000, suggests that a price correction may be imminent.Traders and investors should exercise caution, manage their risk, and stay informed about the latest market developments.

While the short-term outlook appears bearish, it's important to maintain a long-term perspective and consider the potential for Bitcoin to rebound in the future.The cryptocurrency market is inherently volatile, and periods of correction are a normal part of the cycle.By staying disciplined and informed, investors can navigate these challenges and position themselves for long-term success.

Key Takeaways:

• Bearish Divergence: A key momentum indicator is flashing a bearish signal, suggesting weakening buying pressure.
• IFP Signal: CryptoQuant's Inter-Exchange Flow Pulse (IFP) has turned red, indicating increased selling pressure.
• $50,000 Resistance: Bitcoin's inability to break through the $50,000 resistance level is a cause for concern.
• Risk Management: Traders and investors should manage their risk by implementing stop-loss orders and diversifying their portfolios.
• Long-Term Perspective: Maintain a long-term perspective and avoid making hasty decisions based solely on short-term market fluctuations.