Bitcoin Price Struggles to Regain Momentum Amid Bear Dominance

• Bitcoin price declined by 1.52%, slipping down to $56.3K.
• BTC has entered into the extreme fear zone in the market.

Since the beginning of September, Bitcoin (BTC) has failed to flaunt vital price movements. Analysts hint that this might be one of the worst-performing months for Bitcoin based on its historical performance. BTC has faced difficulty maintaining a rally above the $58,000 mark. 

The current market volatility has kept Bitcoin from making a notable upward movement, and the asset has dipped below the critical $57K level. Over the past 24 hours, the asset has declined by 1.52%. After reaching a peak of $57,284, it plunged to $55,712, suggesting the growing bearish trend. At press time, BTC traded at $56,351, as per CMC data. Consequently, BTC has stepped into the extreme fear zone as the Fear and Greed Index stays at 22. 

BitMEX co-founder Arthur Hayes predicts BTC could sink 12% to fall under $50,000 over the weekend. His opinion aligns with growing concerns about the U.S. economy and disappointing job data, which question the Federal Reserve’s anticipated interest rate cuts.

On the other hand, Bitcoin’s social volume has decreased over the past month, and the open interest also dropped rapidly when BTC was rejected at the $64K resistance. Reportedly, Bitcoin has witnessed a 24-hour liquidation of $32.73 million. 

Bitcoin Price Continues Its Bearish Slide 

Over the past week, Bitcoin failed to reverse its downward trajectory, losing over 4% and slipping from $59,124 to a low of $56,199. However, this bearish rally has been prolonged to date.

The technical indicators of BTC display the short-term 50-day and the long-term 200-day moving averages above the current price momentum, indicating a bearish trend in the market. The asset is approaching the oversold condition, as the daily relative strength index (RSI) stands at 41.37. 

BTC price chart (Source: TradingView)

Looking ahead, Bitcoin is likely to witness crucial pressure to break through the current price levels. If the bear hold strengthens, the immediate support level might be found around the $56K range. On the other hand, if BTC regains the upward momentum, it could likely test the initial resistance at $57,162.

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