Bitcoin ’anxiety stage‘ risks more September losses, but there’s a silver lining

Bitcoin analysts are eying a breakout point in the coming weeks, but market sentiment and historical data threaten more potential downside in September.

Bitcoin nears breakout point: analyst

“Bitcoin is nearing the breaking point out of the range.”

A bullish divergence is a technical formation used by traders to identify strengthening market momentum following lower lows. The indicator is associated with price reversals from downtrends.

“In previous cycles, when the price retested the 50-week simple moving average, it bounced at least 40%. On average, the bounce was 71%. If BTC rallies 71% from here, it could reach $92,000.”

“Anxiety stage” before BTC price breakout?

Bitcoin has entered the “anxiety stage,” based on the net unrealized profit-to-loss ratio, according to CryptoQuant contributing analyst Axel Adler. In other words, many short-term investors are underwater, which could mark a potential bottom, as highlighted in the chart below.

“After the Belief stage at $72K, Net Unrealized Profit/Loss (NUPL) shows a green bar, which corresponds to the Anxiety stage. Investor anxiety, if you're not an LTH, is a permanent process, the best remedy for this is HODL.”

“Bitcoin is currently only -1.59% down on the month.”

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.