Bitcoin's price has recently dropped to $55,363, with analysts suggesting it could fall further to around $50,000 due to current market conditions.

As of now, Bitcoin is trading at $56,125, reflecting a 1% decline on the day amidst broader market uncertainties.

The Crypto Fear and Greed Index has fallen to 22, indicating 'extreme fear' among investors, the lowest level since early August.

Market sentiment has been negatively impacted by broader economic factors, including declines in major stocks like Nvidia.

Spot Bitcoin ETFs have experienced significant outflows, totaling $536.22 million this week, with a notable $211 million withdrawn on Thursday.

Historically, Bitcoin has shown an average recovery of about 4% from hourly swing lows in September, suggesting a potential recovery target around $57,500 to $58,000.

Despite the bearish outlook, some analysts, like Franzen, have noted a bullish divergence in Bitcoin's relative strength index (RSI), hinting at possible upward momentum.

Technical analysis indicates a bearish trend, with Bitcoin forming a megaphone top pattern, which may signify a reversal from bullish to bearish.

Investors are advised to monitor key support levels at $56,000, $47,000, and $40,000, as rebounds above these levels could signal a potential market reversal.

The decline in Bitcoin's price has also negatively affected the altcoin market, particularly Ethereum and Solana.

Notably, some traders remain optimistic, with hopes that Bitcoin could reclaim higher levels, potentially invalidating bearish predictions.

In the past day, approximately $98 million was liquidated from the crypto market as traders prepared for the upcoming US jobs data, which could influence Federal Reserve interest rate decisions.