The Bitcoin prices dropped below $60,00 yesterday, October 3, leaving most traders in despair. The traders hoped that the new month would favor BTC, forcing the giant crypto to defy its recent volatility movement and reclaim its critical level.
This turned the opposite when Bitcoin stepped back from its critical resistance level, hitting the $60,000 mark. The sharp drop was accompanied by increased buying pressure and a surge in on-chain activities. This demonstrated that the investors were willing to buy the dip.
Traders Buying the Dip After BTC Fell Below $60K
Data from Trading View shows that BTC retested the $59,860 mark on Bitstamp before climbing above $61,600 on CoinMarketCap. The dramatic twist in BTC prices attracted criticism from key market players.
Source: Trading View
Market critics argued that the increase in geopolitical tension in the Middle East contributed to BTC’s dip, losing its last week’s gains. With the hopes that BTC was on the verge of a breakout rally in ‘Uptober,’ the traders were devastated.
Some expected a definitive recovery above $60K, while others anticipated BTC to remain sluggish. On X, the crypto traders expressed disappointment with BTC’s bearish momentum.
An X user and renowned crypto trader, Toni Ghinea, projected that October will be a bearish month. Ghinea projected that the push-pull investors’ sentiment will drag BTC below $56,000.
The analyst anticipates Bitcoin’s fortune to shift, with BTC hovering below $54,000. While Ghinea remains pessimistic, CrypNuevo projects BTC to stage a significant comeback.
Will ‘Uptober’ Bitcoin Rally Happen?
However, the crypto trader expected BTC to drop slightly below the $60,000 psychological level before the imminent recovery. CrypNuevo expects Bitcoin price swings will be accompanied by massive liquidation before the opposite happens.
Source:CrypNuevo
He noted that the retail traders panicked when BTC reached $59K. In a subsequent report, the CryptoOnchain stated that the October 3 withdrawals from crypto exchanges mirror the figures reported in the 2022 bear market.
The CryptoOnchain explained that reports from on-chain data show that the Bitcoin outflows from exchanges surged. However, the CryptoOnchain envisioned the BTC Uptober rally as poised to occur despite the market downturn.
The analyst recalled that the release of the US employment report fueled BTC bulls. The employment data made risky assets such as crypto assets more attractive to investors.
On Telegram, QCP Capital shared the BTC market prediction. The QCP team described the BTC’s recent downturn as a temporary weakness.
Factors Contributing to Bitcoin Price Swing
Compared to the performance of US stock, the QCP believes that crypto will soon recover. The QCP team mentioned that macroeconomic factors contribute to the price action of risky assets. From their analysis, the QCP described the ADP employment report as beyond expectation.
This implies that the labour market and changes in monetary policies are key drivers in boosting the market performance of risky assets. The QCP anticipates the Bitcoin to reap Uptober gains towards the end of the month,
Elsewhere, the blockchain analytics firm Santiment noted that the social media mention of Uptober has lately declined. The Santiment stated the Middle East geopolitical tension dragged most crypto to the red zone.
The bearish crypto market turned the long-awaited ‘Uptober’ to ‘Selltober.’ With memes and videos showing the BTC ‘Selltober,’ traders remain hopeful that Bitcoin will defy the rocky start and register in the Uptober rally. For more updates on how BTC will recover from the sharp decline, follow TurkishNY Radio on Tumblr, Telegram, and LinkedIn.
