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Bitcoin Price Targets $50K as Nvidia Crash Shakes Markets

Bitcoin neared monthly lows on September 4, with prices falling below $56,000 as the crypto market reacted to a sharp downturn in U.S. tech stocks. Nvidia’s troubles led to a broader risk-off sentiment, affecting Bitcoin, altcoins, and even gold.

• Main Points:

  • BTC Price Drops: Bitcoin dropped to $55,602, nearing levels not seen since early August.

  • Nvidia Impact: Nvidia’s stock price plummeted following a U.S. subpoena, triggering a broader sell-off in risk assets.

  • Potential for Further Decline: Analysts suggest Bitcoin could fall to $51,500 or lower if the current support fails.

  • Increased Volatility: Market indicators point to heightened volatility, with no clear directional bias.

• Detailed Insights:

  • BTC Price Drops: On September 4, Bitcoin’s price dipped to $55,602, its lowest since August 8. This decline follows a 40% recovery from the August crash, only to see BTC/USD potentially retracing towards $50,000. The recent sell-off reflects broader market reactions rather than crypto-specific events.

  • Nvidia Impact: The catalyst for the recent downturn was Nvidia’s stock drop after a U.S. subpoena, which sent shockwaves through the tech sector and spilled over into the crypto markets. Risk assets, including Bitcoin, followed suit as investors moved to reduce exposure. Gold, which recently hit an all-time high above $2,500, also saw a significant drop, further illustrating the broad risk-off sentiment.

  • Potential for Further Decline: Analysts like CrypNuevo noted that Bitcoin’s price action could continue to fill downside candle wicks, targeting $51,500 if support at $56,000 is lost. Fellow trader Jelle observed that Bitcoin’s Relative Strength Index (RSI) suggests a potential reversal, though the market remains cautious. Credible Crypto echoed this sentiment, indicating a possible relief rally if Bitcoin stabilizes around current levels.

  • Increased Volatility: Data from CoinGlass showed total crypto-long liquidations of $200 million in the past 24 hours, highlighting the market’s volatility. QCP Capital’s Volatility Momentum Indicator (VMI) confirmed that both Bitcoin and Ethereum are entering a period of heightened volatility, though the market's direction remains uncertain.

Related: Arthur Hayes Explains Why Fed Rate Cuts Aren’t Boosting Bitcoin

As Bitcoin continues to navigate these turbulent waters, traders are advised to remain cautious. Depending on market conditions, there is potential for both further downside and a relief rally.

Why Is the Crypto Market Down Today?

The cryptocurrency market saw a sharp decline on September 3, with the total market capitalization dropping by over 1.5% to around $2.03 trillion. This downturn is primarily driven by weak U.S. manufacturing data and a subsequent sell-off in the stock market, raising concerns about how much longer this correction may last.

• Main Points:

  • Weak Manufacturing Data: U.S. manufacturing contraction has impacted both equities and crypto, with the S&P 500 and Bitcoin experiencing significant drops.

  • Liquidations Surge: Over $100 million in long liquidations rocked the crypto market, increasing selling pressure and contributing to the downturn.

  • Technical Breakdown: The crypto market’s structure indicates a potential deeper correction, with the market capitalization at risk of falling further.

• Detailed Insights:

  • Weak Manufacturing Data: The crypto market mirrored the weakness in U.S. equities, with the S&P 500 experiencing its worst slump since early August. Bitcoin dropped 1.6% to $57,713, while Ether declined 3.4% to $2,441. The catalyst was disappointing data from the Institute for Supply Management (ISM), showing that U.S. manufacturing contracted for the fifth consecutive month, with the PMI index missing expectations. This data heightened concerns about the economy and increased speculation of a Federal Reserve rate cut at the next FOMC meeting on September 18.

  • Liquidations Surge: The market downturn coincided with a surge in long liquidations, where traders betting on a market uptrend were forced to sell their positions, often at a loss. According to CoinGlass, long traders saw $65.08 million in liquidations within 24 hours, contributing to the sell-off. Bitcoin alone accounted for $18.44 million in long liquidations, while Ether saw $21.9 million liquidated over the last 12 hours. This selling pressure further pushed the market downward.

  • Technical Breakdown: From a technical perspective, the crypto market’s current decline is part of a broader correction within a descending parallel channel pattern. Since March, the market capitalization has dropped 27%, breaking through crucial support levels like $2.2 trillion. The Relative Strength Index (RSI) at 45 suggests increasing bearish momentum, with the market potentially heading toward $1.875 trillion if selling pressure continues. However, a break above the middle trendline of the channel could see a recovery toward $2.341 trillion.

Related: Bitcoin on the Brink: Breakout or Breakdown? Analysts Weigh In

As the market reacts to economic uncertainties and technical pressures, investors should be cautious, with the possibility of further declines in the coming weeks.

Bitcoin (BTC) Golden Cross Confirmed: What This Means for the Market

A prominent crypto analyst, known as “Titan of Crypto,” has highlighted a significant development on Bitcoin's price chart: the confirmation of a “Golden Cross” between the 100-day (MA100) and 200-day (MA200) moving averages. This technical signal, historically seen as a bullish indicator, suggests that Bitcoin may be on the brink of a major upward price movement.

• Main Points:

  • Golden Cross Explained: The Golden Cross occurs when a short-term moving average (MA100) crosses above a long-term moving average (MA200), signaling a bullish trend.

  • Chart Analysis: The recent Golden Cross on Bitcoin's chart has been identified by Titan of Crypto as a potential precursor to a significant bull run.

  • Market Implications: If historical patterns hold, this Golden Cross could lead to a sustained increase in Bitcoin's price, marking the beginning of a new market cycle.

• Detailed Insights:

  • Golden Cross Explained: In technical analysis, a Golden Cross is a well-known bullish signal that occurs when a short-term moving average (such as the MA100) crosses above a long-term moving average (such as the MA200). This crossover is typically interpreted as a sign that a major upward trend is beginning, as it indicates that the asset’s recent price momentum is strong enough to overcome longer-term trends.

  • Chart Analysis: The chart shared by Titan of Crypto, which tracks Bitcoin's price movements since 2013, highlights key moments when the MA100 and MA200 have interacted. The analysis points out that previous “Narrowing” phases (where the gap between the moving averages tightens) often preceded significant market shifts. Additionally, the chart identifies a “Death Cross” (when the MA100 crosses below the MA200), which traditionally signals a bearish trend. The recent confirmation of the Golden Cross, however, marks a potential turning point, suggesting that Bitcoin may soon enter a new bullish phase.

  • Market Implications: The formation of the Golden Cross is particularly noteworthy given Bitcoin's recent recovery from earlier market corrections. Historically, such a signal has led to sustained price increases, with traders and investors viewing it as a cue to increase their long positions in anticipation of higher returns. The timing of this Golden Cross, amidst a gradually recovering market, could indicate that bullish sentiment is starting to dominate, potentially leading to a significant rally in Bitcoin's price.

Related: Home Invaders Used Machete and Toblerone to Steal Bitcoin in Scotland's First Crypto-Traced Robbery

The confirmation of this Golden Cross could mark the beginning of a new chapter in Bitcoin's market cycle, with the potential for significant price appreciation. Traders and investors will be closely monitoring this development, as it may signal the onset of a major bullish trend.

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This article is not financial advice. Market conditions can change rapidly, and past performance does not guarantee future results