Bitcoin's price has struggled to break out of its current downtrend after falling below $60,000, trading as low as $57,790. An indicator, the Stochastic RSI, suggests further price corrections that could send Bitcoin well below current levels.
Crypto analyst Ali Martinez noted a bearish signal from the Stochastic RSI on Bitcoin's 2-month chart, which historically has led to significant price corrections of 75.5% on average. This momentum oscillator measures a security's closing price relative to its price range. A bearish trend indicates an overbought asset due for a drop.
The last significant trend reversal occurred in 2022 at the $60,000 mark, leading to a plummet to $16,000 before recovering to new highs of $73,700. If a 75% correction happens now, Bitcoin could drop to around $14,200.
Bitcoin also faces a challenging September, historically its worst-performing month, as noted by expert Alex Thorn, with declines in seven of the past ten Septembers. However, October has typically been Bitcoin's best month, with gains ranging from 20% to 52%, offering hope for a rebound.
