Bitcoin Drops Below $60,000, Exchange Users "Buy the Dip," Is an Uptober Rally in the Cards?On Oct. 3, Bitcoin dipped below $60,000 at the Wall Street open, with exchange users displaying strong buying interest, prompting both anticipation and concerns about an "Uptober" rally
Bitcoin Drops Below $60,000, Exchange Users "Buy the Dip," Is an Uptober Rally in the Cards?
On Oct. 3, Bitcoin dipped below $60,000 at the Wall Street open, with exchange users displaying strong buying interest, prompting both anticipation and concerns about an "Uptober" rally.
Data from Cointelegraph MarketsPro and TradingView showed Bitcoin's price on Bitstamp dipping as low as $59,860. BTC/USD continued to be pressured by geopolitical uncertainty in the Middle East, unable to recover losses made earlier in the week. Traders were hesitant between further declines and $60,000, seeking a clear area of recovery.
Some analysts remain bearish on the market outlook. Popular trader and analyst Toni Ghinea wrote in his latest X post, Anyone bullish on October is on the wrong side, predicting $56,000 as the next price target for Bitcoin. Ghinea previously had $54,000 or lower as his ultimate target for the current economic downturn.
However, some traders see the potential for the uptrend to return. Popular trader CrypNuevo stated on X: We hit the $60,000 psychological level right on the head, it makes sense to dip slightly below that level to hit stops and some highs. Liquidations before a pull back. Furthermore, CrypNuevo stated, If we see the $59s even for a few hours retail will start panicking.
Order book liquidity provided by monitoring resource CoinGlass shows bids slightly below the $60,000 mark at the time of writing. Data from on-chain analytics platform CryptoQuant confirms the fervent buying interest from exchange users. A Quicktake blog post on the day noted record highs for total exchange withdrawals since the 2022 bear market.
Analysts See BTC Price Returning to "Uptober Rally"
US initial jobless claims data released on the day came with few surprises. The unemployment rate remained low, boosting confidence in the labor market, which could in turn bolster risk assets and the lagging cryptocurrency.
Trading firm QCPCapital concluded in a recent announcement to their Telegram channel subscribers: "We believe this weakness is temporary in nature, as the correlation between crypto and US equities remains strong. As US stocks rebound, we expect crypto to follow suit. This correlation highlights that macro factors are currently the main driver of risk asset prices." The firm added that they expect Bitcoin to enjoy a typical "Uptober" in price performance, returning to upside momentum by the end of the month.
Despite the Middle Eastern tensions weighing on Bitcoin in what has historically been a strong month, we believe this dip is temporary and anticipate the Uptober rally to prevail, QCP stated.
While the market remains divided on the short-term direction, the positive signal of exchange users "buying the dip" and supportive macroeconomic data suggest Bitcoin may still have room for a rebound in October. However, geopolitical uncertainty in the Middle East and potential risks to the global economy remain present, demanding cautious observation from investors.
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