The leading cryptocurrency of the market, Bitcoin (BTC), recently tried to stabilize around $ 112,000 after a sharp decrease up to $ 110,000 on Sunday, which means that a decrease of 10% compared to an high (ATH) level.
In anticipation of the September meeting of the Federal Reserve (FED) September, market expert Doctor Doctor Acquisition on X (formerly Twitter) emphasized the upcoming implications and the most important technical indicators that paint a bleak picture for Bitcoin (BTC) and the wider market.
Feeding rate reduction to activate a new market correction?
Doctor profit emphasized That the current market environment differs considerably from earlier cycles. He believes that the expected rate that the FED will leave next month could initiate a robust correction in both shares and cryptocurrencies.
According to him, the first significant cut usually brings uncertainty, which leads to various opinions among investors, and he predicts that this time there will be no exception.
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Regarding the technical indicators of Bitcoin, the outlook is Kearish. The expert noticed a substantial one Chicago Mercantile Exchange (CME) Gap around $ 93,000 to be tackled, with the most liquidity concentrated in the range from $ 90,000 to $ 95,000.
The graphs indicate a potential correction marked by a double top formation and falling trading volume. In particular, the doctor’s profit claimed that the last price increase that BTC saw reach $ 124,000, largely driven by futures instead of spot market activity, which strengthens the bearish sentiment.
Bitcoin -Price forecast
Market psychology plays a crucial role in this analysis. Statistics and sentiment indicators at the chain show that retail investors often buy high and sell low.
The expert revealed that during the last dip of Bitcoin from $ 110,000 to $ 98,000 between May and June of this year, it was mainly institutional investors who capitalized the lower prices, while buyers of the retail trade missed.
As the prices rose, retail investors came on the market at higher levels, added the doctor’s profit, which could lead to a shakeout if Bitcoin approaches the critical approach liquidation zone From $ 90,000 to $ 95,000.
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In addition to the Bitcoin price action, the doctor’s profit warns that the current market sentiment reflects a false sense of optimism, which suggests that the prevailing belief in a persistent Altcoin season has been misled. He warns that as the enthusiasm grows, larger players can start discharging their positions, which exposes retail investors.
Looks ahead, he predicts a potential rise in Bitcoin prices to $ 145,000 to $ 150,000, which could possibly mean an increase of 34% compared to the current level. The expert also expects Ethereum (ETH) to reach between $ 7,000 and $ 8,000 after the September correction.
During writing, Bitcoin is traded at $ 112,560, with a decrease of 6% in the period of fourteen days. Ethereum, on the other hand, is continuously positioned among the top performers of the market with an increase of 5% during the same period.
Featured image of Dall-E, graph of TradingView.com