Bitcoin Faces Critical Test After Price Drop
At the end of August, Bitcoin dropped more than 13% from its record high above $124,000. This fall also broke a key support line that had been holding for over two years. Many traders worry this could signal a bigger correction, especially as the RSI (Relative Strength Index) is also under pressure.
In the past, when Bitcoin lost both its price trend line and RSI support, it led to big crashes:
- 2013: Price fell from $1,150 to $150 (-85%)
- 2017: Fell from $20,000 to $3,100 (-84%)
- 2021: Fell from $69,000 to $15,500 (-77%)
If the RSI breaks further, analysts warn Bitcoin could drop toward the $80,000 level, based on the EMA-50 (a key moving average).
Trap or Real Correction?
Some experts believe this drop could be a “false breakout” to shake out weak investors. BitBull, for example, says even a dip below $100,000 could be normal before a strong rebound. He sees it as a chance to buy, not the end of the bull run.
Another analyst, SuperBro, points to the Pi Cycle Top model, which has predicted past Bitcoin peaks. According to him, no top signal has appeared yet, meaning Bitcoin might still rise as high as $280,000 before a true reversal. He calls the current $80K–$100K range a “buying zone.”
What’s Next?
- If Bitcoin’s RSI support breaks, a new downtrend could start quickly.
- If Bitcoin bounces back above $114,000, it may return to its long-term uptrend.
The market is at a critical stage, with technical signals, global economy, and regulations all influencing Bitcoin’s next big move.
