Arthur Hayes Takes a Bearish Stance as Bitcoin Nears Monthly Lows, Targets $50K
BitMEX founder Arthur Hayes believes that this weekend could be an eventful one for Bitcoin (BTC) as it once makes its way to the center of market attention after it dipped to another monthly low on Sept. 8.
The recent decline follows weeks of bearish momentum, raising concerns among investors about a possible continuation of the downtrend, particularly if the crucial $54,000 support level is breached.
Market Dips Raise Concerns
According to data from TradingView, Bitcoin’s latest dip occurred during the Asian trading session, bringing it to its lowest levels since August. With the U.S. unemployment data expected later this week, the market seems on edge, especially as bulls struggle to regain control.
Popular analyst Caleb Franzen has been vocal about the potential dangers ahead. In a post on X (formerly Twitter), Franzen shared a chart displaying the 200-day Simple Moving Average (SMA) and Exponential Moving Average (EMA), warning that BTC/USD is teetering on the brink of a deeper correction.
“If Bitcoin loses this green range and has a daily close below $54K (the low daily close on Aug. 5), I’ll concede that this is a formal rejection & new low on the 200-day MA cloud,” Franzen commented. The 200-day SMA and EMA are currently sitting at $63,840 and $59,462, respectively, creating what Franzen refers to as a “cloud” of resistance for the bulls.
Arthur Hayes Joins the Bearish Chorus
Among those predicting a further decline is Arthur Hayes, the former CEO of crypto exchange BitMEX. Hayes has openly stated that he’s taken a short position, betting on Bitcoin to fall below $50,000 over the weekend. His bold call comes as other notable traders and analysts, including Peter Brandt, highlight concerning technical patterns.
Brandt, known for his accurate market predictions, pointed to a “megaphone pattern” forming on Bitcoin’s weekly chart. In his analysis, Brandt suggested that sellers have dominated the market for months, creating the conditions for a possible test of the lower boundary at around $46,000.
“A massive thrust into new ATHs is required to get this bull market back on track. Selling is stronger than buying in this pattern,” Brandt remarked, signaling that bulls face a tough road ahead.
Potential Reversal?
Despite the growing bearish sentiment, Franzen offered a glimmer of hope for Bitcoin bulls. He noted that the Relative Strength Index (RSI) has shown a bullish divergence, even as Bitcoin’s price continues to fall. This technical indicator could indicate that the downtrend might slow down or reverse in the short term.
Also read: MATIC Crypto Under Pressure: What Traders Need to Know
While Bitcoin’s price action remains uncertain, the market awaits key developments. The next few days will be crucial for determining whether Bitcoin can hold its ground above the critical $54,000 level or if Arthur Hayes’ bearish bet will come to fruition, with BTC falling to new lows.
With prominent figures like Arthur Hayes predicting further declines and technical indicators flashing warnings, Bitcoin’s future remains highly uncertain. Investors should brace themselves for potential volatility, especially as key support levels are tested in the coming days. Whether the bulls can stage a comeback or the bears take full control will likely be revealed soon, making this a pivotal moment for the cryptocurrency market.
