Bitcoin (BTC) Crashed to $52,568 on September 6, Signaling a Potential Bullish Reversal

Bitcoin (BTC) crashed to $52,568 on September 6, up to 10.85% losses since the start of the month.

Bitcoin (BTC) price crashed to a low of $52,568 on September 6, a drop of over 10% from the month’s opening price. Amid discussions about the “September Effect” punishing BTC investors, a prominent analyst showed optimism as the apex crypto reached the “downside target.”

The analyst in question is Credible Crypto, a well-known Bitcoin bull who now signals his current bias with the alias CrediBULL Crypto. Interestingly, the trader had maintained a bearish bias in the past few months, warning of an impending BTC retracement.

However, this recent crash has now shifted Credible Crypto's short-term Bitcoin price prediction, leading him to anticipate an incoming bullish reversal. Furthermore, the analyst highlighted that given how quickly BTC crashed, the "full bull gear" may arrive "sooner than expected."

As evident in the chart, the analyst's analysis suggests that Bitcoin could be targeting the $100,000 psychological level as BTC's fifth impulse wave. This wave is identified using the Elliott Wave Theory, and the trader believes it will likely mark the cycle's top.

Well, my downside target on $BTC has been hit, and the original idea shared below looks to have played out, despite us not getting any relief in between (like I was most recently expecting).

By skipping the "relief rally" in between and just heading straight down, we may have… https://t.co/ObW2GkgRPn

Other analysts' perspectives on BTC price

At the time of writing, BTC is trading at $54,480, down 7.90% over the past seven days.

Interestingly, the recent crash also hit the downside targets of other analysts before a forecasted higher time frame bull rally. For instance, Finbold reported CrypNuevo's trading plan for the week last Sunday, which unfolded as expected.

The trader predicted Bitcoin would go through a “run for liquidity” up to $61,300 – partially accomplished at $59,799. And then crashing back to a range between $51,500 and $56,600, chasing imbalances created by long-position traders.

Moreover, prior to the crash, Finbold highlighted another analyst's warning of "a bear trap before the spike." Notably, the expert, known as The ForexX Mindset on TradingView, anticipated BTC would briefly break out of a bull diamond chart pattern to the downside, trapping Bitcoin short-sellers.

The analyst had a target of $50,000-$55,000 for this bear trap, which BTC achieved.

If these three analysts' projections continue to be realized, the crypto market could be set for a substantial shift in the upcoming days. Interestingly, the prevailing bearish sentiment among retail traders is said to validate what professional traders view as a local bottom and an incoming rally.

However, it's crucial to note that cryptocurrencies are inherently unpredictable, influenced by a wide range of factors, and are also highly volatile assets. Therefore, investors are advised to exercise caution and conduct thorough risk assessment, despite the positive forecasts reported.

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