The market crash is coming! Rare signal: short Bitcoin boldly, the weekend target is below $50,000
On Friday (September 6), Bitcoin hit a low of $55,648 in the early morning of the Asian market, and then rebounded slightly to the $56,600 level. The cryptocurrency market was hit by the risk of a US recession. Legendary trader and BitMEX founder Arthur Hayes released a rare signal. He boldly shorted Bitcoin, aiming to break the $50,000 integer mark over the weekend.
The Cryptocurrency Fear and Greed Index (used to measure market sentiment and trends, with a total score of 100) reached 22 points on Friday, showing a degree of "extreme fear", a 7-point drop from the "fear" sentiment the day before.
This is the lowest score and price since the index hit 20 points on August 8, and the first time it has re-entered the "extreme panic" zone since the index hit 25 points on August 12.
At the same time, Bitcoin has struggled to gain momentum due to concerns about the US economic downturn.
Thursday's "small non-farm" U.S. employment data fell short of economists' expectations, further fueling concerns about the Federal Reserve's expected rate cuts.
The price plunge across the board led to $94.26 million in liquidations over the past day, mainly from those who bet that the price of Bitcoin would rise, according to CoinGlass data.
In total, just over $71 million worth of long bets were liquidated, including $36.71 million in long Bitcoin bets (nearly 40% of the day's liquidations), followed by $17.36 million in long Ethereum bets.
Cryptocurrency traders are preparing for further market volatility as they await key economic data to determine whether the U.S. is close to a recession and how the Fed will adjust its policy. As concerns shift from inflation to economic growth, weak macro data weighs on risk assets such as stocks and cryptocurrencies.
If Bitcoin rebounds from current support (0.618 Fibonacci retracement around $56,300), it could invalidate the wedge breakout setup, triggering a move toward the 0.382 Fibonacci line around $59,000, or a 5% gain from current price levels.
