The Bitcoin Mood: Not So Great Right Now!

So, it’s not the best time for our buddy Bitcoin. In fact, it seems like the entire crypto crew has decided to go for a little dip in the pool – and we’re talking about the deep end. Just recently, on September 14, our beloved Bitcoin plummeted below $95,000, hitting the lowest point it has seen in over six months. Ouch!

A Rare Signal: Uh Oh!

But wait, there’s more! It looks like Bitcoin is gearing up for a longer stretch of gloomy weather because a rare bearish signal just went off for the first time in four years. What does that mean? Well, let’s delve into the mystery of the dreaded sell signal.

Enter the Experts

Recently, Tony Severino, a Chartered Market Technician with a flair for the dramatic, took to social media (you know, the platform formerly known as Twitter) to share an alarming forecast for Bitcoin’s future. According to Severino, the infamous “weekly supertrend” indicator just blared its sell signal, marking the first time since December 2021 that we’ve heard this wretched sound.

What’s This Supertrend Thing Anyway?

For those not in the loop, the weekly supertrend is a snazzy technical indicator that plays around with the Average True Range (ATR) and throws in a multiplier for good measure. It helps us track whether Bitcoin’s price is feeling bullish (green light) or bearish (red alert). Spoiler: it’s currently showing us some serious red flags.

Flashback to December 2021

Remember back in December 2021? That’s when this sell signal made its last appearance, marking the dramatic end of the previous Bitcoin bull cycle. What followed? Oh, just a little plunge of over 70% for Bitcoin, thanks to some chaotic sell-offs connected to the Terra LUNA and FTX situations. What a wild ride!

What’s Next? Will History Repeat Itself?

If we’re taking notes from history, this sell signal could hint at a potential dive of 60% to 70%. That’s right, folks; we might be looking at a Bitcoin price returning to around $30,000! Can you say “hold on to your wallets?”

Wait, There’s a Catch!

But don’t hit the panic button just yet! This weekly supertrend sell signal is still hanging in the balance — it’s not confirmed just yet. The indicator has been signaling “buy” since January 2023, and a weekly price dip below $96,300 could trigger the start of an official bear market for Bitcoin.

Current Status Check

As we’re chatting, Bitcoin is chilling just above $94,400, which is a tad over a 6% drop in the last 24 hours. Yikes! But stay tuned—this rollercoaster is far from over!