Prior to the slide in Bitcoin pricing on September 19, futures contracts at the Chicago Mercantile Exchange suggested that the BTC/USD currency pair would be able to settle around $50K and form a support level that many traders would feel comfortable with. This slightly bullish sentiment failed to take hold as BTC gradually lost steam and dipped below $47K.

Things were different a day before the 24-hour slide that eventually shaved off $3,000 despite CME data indicating that quite a few investors hoped to see market stability. This was not to be, but there are still a few reasons why BTC futures traders should feel cautiously optimistic.

A look at the charts, however, reveals that the most recent price surge is not a continuation of a bullish trend, which would indicate that we have seen the peak for this period. There is a high likelihood that Bitcoin will continue to slide in the near future as a result. The reasons that support this view can be divided into two groups: technical and fundamental.

Bitcoin Is Not Quite Back Yet

Will we ever get back to the halcyon days when Bitcoin looked as if could comfortably trade around 70K? There aren't many reasons to support such positive sentiment, at least not for the time being.

One of the reasons why many traders are nervous about Bitcoin’s price is because they don’t want to be caught holding a losing asset. If the current move in price occurs, people are likely to hold on to their Bitcoin at any cost. However, this doesn’t necessarily mean that they have been burned.

A recent study indicated that the majority of cryptocurrency traders lose money or break even on their trades. On this basis, it is understandable why people don’t like to hold assets that they don’t believe in. It would therefore be wise to wait before selling for the time being.

Market Dynamics

Another reason why traders might fear Bitcoin is the way that the market is currently performing. According to technical analysis, Bitcoin is in the throes of a bearish cycle. This suggests that any short term gains could be wiped out before the end of the year.