Bitcoin Traders Support Below $52K BTC Price As Crypto And Macroeconomic Headwinds Intensify
The price of Bitcoin (BTC) is trading 10% above the eight-month low of $49,577, reached on August 5, and traders fear that a new low below $52,000 may occur before the breakout.
BTC/USD Daily Chart. Source: TradingView
On September 6, Bitcoin extended its correction, up more than 5.9% from a high of 56,984 to reach an intraday low of 53,613.
Based on this performance, analysts now believe that downside risks remain for Bitcoin, with the $52,000 level currently being a key area to watch.
“#Bitcoin is pushing deeper into the lows of $52,000,” noted trader Jelle wrote on X on September 6.
Jelle is responding to a sharp drop in Bitcoin prices following the release of below-expected US jobs data, which cast doubt on the health of the job market.
According to the analyst, over the past few days, Bitcoin's sales have fallen below key support levels, including the psychological level at $58,000 at the 200-day simple moving average.
The price is currently trading below this supply zone, and Jelle believes that bulls will need to strongly defend the July 5 low of $52,000 to prevent BTC from sinking deeper.
“Rektember Out in Full Force.”BTC/USD Chart. Source: Jale
Meanwhile, fellow analyst Diane CryptoTrades offers two scenarios based on Fibonacci levels, which ranged from a low of $49,577 on August 5 to an area high of $65,103 on August 25. Re-completion rate at $54,604.
The second look includes a support break at $54,000 to continue the downward trend. This could provide a long-term entry point at $52,400 at a 78.6% retracement level.
BTC/USD Daily Chart. Source: Daan Crypto Trades
“Bitcoin price may drop below the $53,000 to $54,000 support zone before making a move higher,” said Michael Van de Pop, founder of MN Advisors.
According to Van de Pop, for this to happen, the price of Bitcoin must quickly return to the $56,000 level.
Source: Michael Van de Pop
Related: Arthur Hayes Tips ‘Sub-$50K' Bitcoin Weekend as ‘Extreme Fear' in Crypto
Bitcoin UTXO decline in profits
Anonymous analyst Kyledoops has shared a CryptoQuant chart showing Bitcoin's unspent trading results (UTXOs) have been trending lower since mid-July, suggesting profit-taking activity.
Bitcoin UTXOs represent the amount of cryptocurrency that remains after transactions on the network. Analyzing the scale is critical to understanding investor behavior at different times.
“Bitcoin UTXOs profit percentage falls to 68.5%, lowest level since October 2023,” wrote Kaledops, who posted on X on September 6.
“This decline indicates selling pressure from profit-taking traders. “Bitcoin UTXO Percentage Profit. Source: CryptoQuant
Overall, shorting Bitcoin UTXOs at a profit gives room for BTC to rally as the seller fatigue begins.
The last time UTXOs reached a profit level was in 2018. It was January 2023, before Bitcoin's price rally to a new all-time high, rising 273% from $26,700 to $73,000.
“Historically, such declines have been preceded by significant price increases; after a previous similar decline, bitcoin's price rose by 273 percent.” This article does not contain investment advice or recommendations. Every investment and trading activity involves risk, and readers should conduct their own research when making a decision.
