Bitcoin (BTC) Price Prediction: Will BTC Drop Below $50K Before Rebounding to New All-Time Highs?

The possibility of further crypto selloffs in the near term increased as Bitcoin's (BTC) price closed below the crucial support level of around $57k on Thursday.

Bitcoin (BTC) price showed signs of weakness on Friday morning as it closed below a crucial support level, increasing the possibility of further crypto selloffs in the near term.

After closing August with a bearish outlook, which signaled further weakness in September, Bitcoin demand from whale traders dropped significantly. For instance, the US spot Bitcoin ETFs clocked seven consecutive days of notable cash outflows.

On Thursday, the net cash outflow from US spot Bitcoin ETFs was around $211 million, with Fidelity’s FBTC leading the outflows. Notably, BlackRock’s IBIT did not register any cash outflows recently.

However, several on-chain data movements indicate that whales have been observed depositing their Bitcoins on exchanges in the past few days.

A whale deposited 380 $BTC($21.34M) to #Binance again 4 hours ago.

And the whale has deposited a total of 4,544 $BTC($265M) to #Binance in the past 7 days.

https://t.co/yCAMkUhWQR

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Despite the observation, the overall supply of Bitcoin on centralized exchanges has continued to drop in the past five months, suggesting that the ongoing market correction has not affected long-term holders.

This is called an inverted expanding triangle or a megaphone. A test of the lower boundary would be to 46,000 or so. A massive thrust into new ATHs is required to get this bull market back on track $BTCSelling is stronger than buying in this pattern

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According to veteran trader Peter Brandt, the Bitcoin price has been forming a macro megaphone, which precedes a major bullish outlook, but the bearish sentiments have outweighed the buyers.

A similar narrative was put forth by Bitmex co-founder Arthur Hayes, who highlighted that the Bitcoin price will likely drop below $50k in the near term before recovering to an all-time high.

Despite the anticipated interest rate cut in the coming weeks, Brandt believes the BTC price is set to retest the support level of around $46k.

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