Traders warn Bitcoin may not have hit bottom despite recent support

Bitcoin's (CRYPTO:BTC) recent price performance has raised doubts among traders about whether the cryptocurrency has reached its bottom.

Despite maintaining short-term support levels, market sentiment remains cautious due to ongoing volatility.

On September 17, Bitcoin (BTC) managed to hold its support, stabilizing around $58,000 during the Asian trading session following a broader sell-off in the U.S. market.

The 21-day simple moving average (SMA), which was at $57,858 at the time, acted as a crucial support level.

Keith Alan, co-founder of Material Indicators, warned that while losing the 21-day SMA is concerning, the 50-week SMA, at $53,945, is a more critical level for BTC to maintain.

Popular trader Jelle pointed out that the 50-week exponential moving average (EMA) has consistently served as market support throughout the last 20 months of Bitcoin's bull market.

He mentioned that "bull market summer chop" has become a typical pattern and speculated that Bitcoin could reach new all-time highs by the third week of October if current trends continue.

This view aligns with recent theories from analysts like Michaël van de Poppe, who also foresee a potential return to price discovery for Bitcoin in the coming month.

However, not all traders are convinced of an imminent breakout.

Analyst Josh Rager expressed caution, noting it may be too early to declare a price bottom.

He referenced a previous trend where Bitcoin's price rejected the midline and formed new lows after similar predictions in June.

"Not saying a new low comes here but calling this the bottom is a bit too early. Price rejected again," Rager remarked.

The uncertainty surrounding Bitcoin's price movement has influenced overall market sentiment.

The Crypto Fear & Greed Index dropped to 33/100 on September 17, down from 50/100 two days earlier, shifting from "neutral" to "fear" following a 4% decline in Bitcoin's price.

At press time, the Bitcoin (BTC) price was $60,105.04.