BitMEX CEO Arthur Hayes issued significant warnings about Bitcoin’s price movement. Hayes expects BTC to drop below $50,000 this weekend. Currently, Bitcoin is under selling pressure and is trading at $55,775 with a 2.5% decline at the time of writing.
BTC is heavy, I am targeting below $50,000 this weekend. I took a small short position. Pray for my soul, because I am a degen.
US Labor Data and Fed Interest Rate Decision
Hayes expects a further 12% drop from current levels. The selling pressure on Bitcoin comes just before the release of US non-farm employment data. Employment in the US private sector fell below 100,000 in August, a 20% drop from July.
In this uncertain environment, all eyes are on the Fed rate cut on September 18. Most market analysts expect a 50 basis point rate cut from the US central bank.
Liquidation and Fear Index in the Crypto Market
According to CoinGlass data, $99 million worth of liquidations occurred in the broad crypto market in the last 24 hours, with $76.9 million of it being long position liquidations. On September 6, the Crypto Fear and Greed Index, which measures market sentiment on a scale of 0 to 100, dropped to 22, indicating “extreme fear.” This marks a seven-point drop from the previous day’s “fear” sentiment of 29.
Peter Brandt Predicts BTC Price Drop to $46,000
Arthur Hayes is not the only one predicting a drop below $50,000 for BTC. Experienced trader Peter Brandt noted the formation of an “inverse expanding triangle” or “megaphone” pattern on the BTC price chart, which could lead BTC to test the lower boundary and drop to $46,000.
This is called an inverse expanding triangle or megaphone. Testing the lower boundary means a drop around $46,000. A significant rise towards new ATHs is necessary for this bull market to get back on track.
Brandt stated that Bitcoin is currently facing strong selling pressure and that a new all-time high is needed to confirm a trend reversal. Earlier this week, Brandt also expressed his bearish stance, noting that lower highs and lower lows are worrying indicators.
He added that the buying momentum post-halving has weakened, reducing investor excitement and further affecting market sentiment.
The predictions of Bitcoin price drops by BitMEX CEO Arthur Hayes and experienced trader Peter Brandt have a significant impact on the market. Factors such as US labor data and the Fed interest rate decision will be decisive for Bitcoin and the overall crypto market. According to market analysts’ forecasts, closely monitoring the future movements of cryptocurrencies could be crucial for investors.
