Greed

bullish

Bitcoin

Rekt

Crypto market sentiment has dropped to an over-one-month low as analysts warn of a potential Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="" target="_self" text="null" title="https://cointelegraph.com/bitcoin-price">BTC</a>) price correction below $50,000 as soon as this weekend.
<h2 id="crypto-trader-sentiment-drops-to-extreme-fear">Crypto trader sentiment drops to ‘extreme fear’</h2>
The <a data-ct-non-breakable="null" href="https://alternative.me/crypto/fear-and-greed-index/" rel="null" target="null" text="null" title="null">Crypto Fear &amp; Greed Index</a>, a multifactorial measure of crypto market sentiment, fell to a one-month low of 22, last seen at the beginning of August. 
<figure>
 <img alt="Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c7ad-e4b0-72f9-915b-2782a4480d3b">
 <figcaption style="text-align: center;">
 Crypto Fear &amp; Greed Index. Source: alternative.me
 </figcaption>
</figure>
The index fell to 17 back when Bitcoin’s price fell to $49,000, <a data-ct-non-breakable="null" href="https://x.com/AxelAdlerJr/status/1832007989605159226" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/AxelAdlerJr/status/1832007989605159226">shared</a> analyst and CryptoQuant author Axel Adler in a Sept. 6 X post:
<blockquote>
 “During the mining ban in China, the index dropped to 10%. The maximum drop to 6% occurred during the Luna crash. HODL.”
</blockquote>
<figure>
 <img alt="Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c7ae-5ae9-7d6e-ac24-f4112472f69b">
 <figcaption style="text-align: center;">
 BTC: Fear &amp; Greed Index. Source: Axel Adler/X
 </figcaption>
</figure>
The sentiment drop comes amid concerns of a September correction below $50,000.
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-110k-still-in-play-analysts-warn-sub-40k-correction" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-110k-still-in-play-analysts-warn-sub-40k-correction">Bitcoin $110K setup ‘still in play,’ but analysts warn of sub-$40K dip first</a>
Bitcoin could risk a correction below this key price level as soon as this weekend, <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/arthur-hayes-sub-50k-btc-price-bitcoin-risks-trend-shift" rel="" target="_self" text="null" title="https://cointelegraph.com/news/arthur-hayes-sub-50k-btc-price-bitcoin-risks-trend-shift">warned Arthur Hayes</a>, former CEO of crypto exchange BitMEX.
<blockquote>
 “BTC is heavy, I’m gunning for sub $50k this weekend. I took a cheeky short. Pray for my soul, for I am a degen.”
</blockquote>
<h2 id="september-btc-price-dip-in-line-with-halving-cycle">September BTC price dip in line with halving cycle</h2>
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, <a data-ct-non-breakable="null" href="https://www.coinglass.com/today" rel="nofollow noopener" target="_blank" text="null" title="https://www.coinglass.com/today">according</a> to CoinGlass data. 
<figure>
 <img alt="Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c7ae-bff0-78e7-b998-bb3c438c0e6a">
 <figcaption style="text-align: center;">
 Bitcoin monthly returns percentage. Source: CoinGlass
 </figcaption>
</figure>
Thus, the current correction remains in line with previous Bitcoin halving bull cycles, <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1831972064967995693" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/rektcapital/status/1831972064967995693">wrote</a> crypto analyst Rekt Capital in a Sept. 6 X post:
<blockquote>
 “Bitcoin is down -6.19% for the month of September. This approximately matches the September single-digit downside experienced in 2022, 2021, 2020, 2018 and 2017. This downside is not out of the ordinary.”
</blockquote>
 This could bring more short-term downward pressure, added the analyst, sharing the below chart in a Sept. 6 X <a data-ct-non-breakable="null" href="https://x.com/rektcapital/status/1832053068348698974" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/rektcapital/status/1832053068348698974">post</a>:
<blockquote>
 “There’s that rejection from the orange diagonal (red circle). That’s why 4-hr candle bodies above resistance are so important to confirm the next trend. Upside wicks into/above the diagonal precede rejections.”
</blockquote>
<figure>
 <img alt="Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c7af-68ca-73a4-9327-b1cec6fb1f60">
 <figcaption style="text-align: center;">
 BTC/USD, 4-hour chart. Source: Rekt Capital
 </figcaption>
</figure>
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 <a data-ct-non-breakable="null" href="https://x.com/thescalpingpro/status/1831595621444133062/photo/1" rel="nofollow noopener" target="_blank" text="null" title="https://x.com/thescalpingpro/status/1831595621444133062/photo/1">post</a>:
<blockquote>
 “Bitcoin is forming a massive cup and handle pattern.”
</blockquote>
<figure>
 <img alt="Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K" name="" src="https://s3.cointelegraph.com/uploads/2024-09/0191c7af-e676-7639-bcdb-c028e91cd083">
 <figcaption style="text-align: center;">
 Bitcoin, cup-and-handle pattern. Source: Mags
 </figcaption>
</figure>
Bitfinex analysts have also warned of a potential <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-sub-50k-correction-september-analysts" rel="" target="_self" text="null" title="https://cointelegraph.com/news/bitcoin-sub-50k-correction-september-analysts">correction below $50,000</a> before the real bull rally. The analysts told Cointelegraph:
<blockquote>
 “This is not an arbitrary number, but based on the fact that the cycle peak in terms of percentage return reduces by around 60%–70% each cycle, and the average bull market correction has reduced as well.”
</blockquote>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Crypto market enters ‘extreme fear’ as analysts warn of Bitcoin below $50K

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