Plunge

bullish

Bitcoin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Bitcoin’s bear market has been dominant recently, potentially pushing the cryptocurrency’s price down to $40K.</li> 
 <li>Historically, September has seen Bitcoin’s most bearish trends, adding to the uncertainty of the current market.</li> 
</ul> 
<p> Bitcoin’s bear market has caused a consolidation of its price within a particular range, putting the potential for a bull rebound at risk. If the bear market maintains its dominance, it is possible that Bitcoin could fall to $40K.</p> 
<h2 id="bitcoin-s-uncertain-outlook">Bitcoin’s Uncertain Outlook</h2> 
<p>At the time of writing, Bitcoin was trading above $57K, a critical level for a potential rebound. If the bulls can hold this position, Bitcoin could rally towards the $68K resistance. However, if the bear market takes control and Bitcoin loses the $55K support, it could potentially decline to between $50K-$51K. If this support fails, a deeper drop toward $40K could be on the horizon.</p> 
<p>Historically, September has been Bitcoin’s most bearish month, with only four positive years out of the past 13. This historical trend adds to the uncertainty of the current market situation.</p> 
<h2 id="bear-market-dominance">Bear Market Dominance</h2> 
<p>Analysts are warning that the bear market could regain control. The TD sequential indicator on the Bitcoin 2-month chart is showing a sell signal, suggesting a potential drop. If Bitcoin falls below $51,000, it might slide to $40,600, a scenario that bulls would ideally want to avoid.</p> 
<p>In order to prevent this, it is crucial to maintain the $57K support level. It is believed that reducing overcrowding in leveraged positions could help prevent sudden, sharp price movements. If open interest is reduced by 10%, it could help stabilize the market and result in a bear pullback or a bullish swing.</p> 
<p>The bear market has been dominant at the start of September, keeping the price within the $59K – $57K range. If the bear market takes control and Bitcoin tests the $56,572 price range, about $45 million in 100x leverage positions could be liquidated, potentially pushing the price closer to $51K.</p> 
<p>On the other hand, if Bitcoin moves closer to $57,400, around $67 million in short positions could be liquidated. High open interest with shorts dominating the derivatives landscape could favor the bear market. Therefore, maintaining the $56K – $57K support level is crucial for a potential breakout.</p> 
<p>In recent developments, it appears that institutions are selling Bitcoin. Crypto asset management company Ceffu has deposited 3,063 Bitcoin, worth $182 million into Binance since the 26th of August. This move suggests a lack of optimism among large holders. If this trend continues, it could trigger market panic.</p> 
<p>To defend the $57K support and target $68K, long-term holders must avoid a selling spree. Otherwise, with shorts dominating, Bitcoin might fall to $51K and potentially below $40K.</p>

Will Bitcoin Sustain $57K Amid Bearish Trends or Plunge to $40K?

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CoinEagle.com

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