Bitcoin Hits Six-Week High, but Analysts Anticipate Possible Downturn to $20,000
Summary:
Bitcoin has started October on a positive note, hitting a six-week high. Despite this, some analysts predict a return back to a $20,000 price range. Cryptocurrency analyst, CryptoBullet, identified a potential “head and shoulders” chart pattern which could indicate a bearish trend in the second half of October. Meanwhile, Joao Wedson, CEO of Dominando Cripto, also predicted a possible downturn, drawing parallels to Bitcoin's journey between 2020 and 2022.
Bitcoin (BTC) kicks off the month of October on a positive note, peaking at its six-week high. However, there are predictions of a regression back to the $20,000 price range. With a surge of around 6% since the beginning of last month, hovering roughly at $27,500, Bitcoin's current market behaviour leaves room for scepticism.
Analyst CryptoBullet anticipates a bearish turn for Bitcoin in October, despite the recent price strength that sparked hope among several investors for a potential breakthrough of the $30,000 resistance. He maintains that returning to the $20,000 price target remains a distinct possibility. In his interpretation, Bitcoin's recent ascent to $28,600 could be illustrating the right shoulder of a typical "head and shoulders" chart pattern, which implies an impending downturn.
In a debate, CryptoBullet stated that he predicts a bearish trend for Bitcoin for the latter half of October. This projected trajectory is based on an earlier forecast made in August, which foresaw a brief rise to $28,000 before settling back towards the $20,000 target.
During the same conversation, the analyst remarked that Bitcoin's lower limit could vary between $19,000 and $21,000. However, fellow trader Elizy expressed doubts about the likelihood of such an eventuality.
In his recent blog post published on September 28, Joao Wedson, the founder and CEO of crypto trading resource Dominando Cripto, drew parallels to Bitcoin's journey between 2020 and 2022. He wrote about the impressive appreciation of Bitcoin during that period and the subsequent massive correction that led to a significant fall in prices.
Wedson also expressed concerns about the resurgence of sub-$20,000 levels if history were to repeat itself as a fractal pattern. He noted the resemblance between the current situation, where Bitcoin attracted an abundance of attention from institutional and retail investors by gaining over +100%, and its past performance.
He projected a target of $19,500 USD for Bitcoin, if the fractal pattern persists over the upcoming weeks. This could induce a wave of fear and negative news within the cryptocurrency sector. Additionally, the possibility of redistribution exists where institutional profit booking could suppress the price, creating a cloud of uncertainty over the market.
This report does not aim to provide investment advice or recommendations. Investing and trading are risky ventures, and readers should make informed decisions based on their personal research.
Published At
10/3/2023 2:30:52 PM
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