Bitcoin Price Target of $50,000 Under Threat as Market Turbulence Intensifies
Bitcoin price target of $50,000 is under intense scrutiny as the cryptocurrency grapples with heightened pressure. The recent plunge in Nvidia’s stock has sparked widespread concern across risk assets, placing Bitcoin at a pivotal moment. Investors are now closely watching whether Bitcoin can maintain its upward momentum or if the turbulence will drive it further from the $50,000 mark.
On September 4, Bitcoin (BTC) hovered near its monthly lows, slipping under $56,000 as the broader crypto market felt the effects of a significant downturn in United States tech stocks. This slump was catalyzed by Nvidia, a tech giant that saw its stock plummet following a U.S. subpoena. This event has led to a rush to the sidelines, with Bitcoin investors joining other risk asset holders in a cautious retreat.
BTC/USD 4-hour chart. Source: TradingView
According to data from Cointelegraph Markets Pro and TradingView, BTC/USD reached a low of $55,602 on Bitstamp, a level not seen since August 8. After a promising recovery of nearly 40% from its August crash, Bitcoin’s price is now backfilling downside candle wicks, eyeing a potential drop toward the $50,000 mark—a key Bitcoin price target that is under intense scrutiny.
Nvidia’s woes have not only affected Bitcoin but have also caused ripples across other markets. Gold, which recently achieved a record high above $2,500, shed up to 1.3% on September 3. Japan’s Nikkei 225, reacting to the US subpoena market’s volatility, dropped 4.2% during the September 4 Asia trading session, further adding pressure on Bitcoin and other cryptocurrencies.
The Kobeissi Letter, a trading resource, highlighted this market-wide retreat in a recent commentary, noting, “September has commenced with a widespread rush to the sidelines.” This sentiment is reflective of the cautious approach being adopted by traders and investors alike, who are now revising their Bitcoin price targets in response to the ongoing uncertainty.
Traders Outline Short-Term Bitcoin Price Targets
As Bitcoin continues to navigate these choppy waters, traders are closely watching for signs of a bounce or further decline. Popular trader CrypNuevo identified a series of short-term targets, pointing to a potential drop to $51,500 as part of an ongoing candle wick filling exercise.
In a post on X (formerly Twitter), CrypNuevo stated, “7-days liquidations hit at $57k, and $56.6k (4h) long wick filled. Run for liquidity and wick fill projection completed. Watching for a potential bounce around this area. And if lost, we’ll fill the daily wick at $51.5k.”
BTC/USDT chart (screenshot). Source: CrypNuevo/X
Another trader, Jelle, echoed this sentiment, suggesting that Bitcoin might be forming a bullish divergence on the 12-hour chart. “Sweep + potential 12h bullish divergence forming for Bitcoin, as it tests the support level again,” Jelle noted. This analysis aligns with the broader market expectation that Bitcoin might find some support near its current levels, although the potential for further declines cannot be ruled out.
The heightened volatility in the Bitcoin market is not just a result of external factors like Nvidia’s stock crash. Monitoring resource CoinGlass recorded total crypto long liquidations of $200 million in the 24 hours leading up to the time of writing, underscoring the market’s sensitivity to sudden moves.
QCP Capital, a trading firm, recently alerted its Telegram channel subscribers to the increasing volatility in both Bitcoin and Ethereum. “QCP’s Volatility Momentum Indicator (VMI) has been triggered this morning for both BTC and ETH, indicating that the market is entering a period of heightened volatility,” the firm stated. However, QCP Capital also cautioned that the VMI signal is “directionally agnostic,” meaning that while volatility is expected to rise, the direction of the price movement—whether up or down—remains uncertain.
While the Bitcoin price target of $50,000 remains a significant psychological and technical level, opinions on whether BTC will breach this mark are divided. Some analysts believe that the recent market shakeout could lead to a relief rally, potentially pushing Bitcoin back toward higher levels.
Credible Crypto, another prominent trader, expressed optimism for a near-term rally despite the recent downturn. “Didn’t get that move up first, unfortunately, but we have now hit my downside target, so hopefully this just means we are now ready for that relief rally sooner rather than later,” they commented.
XAU/USD 4-hour chart. Source: TradingView
However, others caution that the market’s current state is precarious. The combination of external pressures, such as Nvidia’s struggles and the broader tech stock rout, alongside internal factors like rising volatility, suggests that Bitcoin’s path forward may be fraught with challenges.
As Bitcoin navigates these uncertain times, the $50,000 price target is a key level that traders and investors are watching closely. The ongoing volatility, driven by both market-specific and macroeconomic factors, is likely to continue influencing Bitcoin’s price in the near term. While some traders see potential for a bounce, the risk of further downside remains, making this a critical period for the world’s leading cryptocurrency.
In conclusion, for those tracking Bitcoin’s movements, staying informed about the latest developments and expert insights will be crucial in understanding where the market might head next. With the Bitcoin price target of $50,000 under threat, the coming days could prove pivotal for both short-term traders and long-term holders alike. Get more from The Bit Gazette
