Bitcoin plummeted to just under $60,000 on Thursday as the crypto market withstood a brutal sell-off. The crypto market bloodbath came after a major missile strike by Iran targeting sites across Israel, which the latter has vowed to retaliate. Bitcoinâs drop as the specter of war looms in the Middle East sparks renewed debate over whether the flagship crypto is a good hedge against geopolitical risks.
Meanwhile, an analyst studying price charts is forecasting deeper price losses for Bitcoin.
BTC At Risk Of Deeper Pullback To $52K
Bitcoinâs recent price slide may have legs.
Prominent crypto analyst Ali Martinez has cautioned Bitcoin investors to brace for a further decline following the premier cryptoâs recent single-digit correction.
Martinez told his 73,300 followers on the X (aka Twitter) microblogging site that BTC could fall toward $52,000. He based his prediction on whether the descending parallel channel that BTC has been trading within since spring becomes the governing pattern.
#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB
â Ali (@ali_charts) October 2, 2024
A descending parallel channel is a chart formation that entails two descending trendlines that define an assetâs price movement. The pattern typically signals bearish sentiment as the price is stuck within a tight range.
Bitcoin decisively falling below the psychologically crucial $60,000 mark could prove costly, opening the doors for a deeper drop toward $52,000. The onus is now heavily on bulls to swiftly drive prices back above $61,000 or risk conceding full control to the bears immediately.
Bitcoin Below $60K Is A Buying Opportunity?
The head of Digital Assets Research at Standard Chartered, Geoff Kendrick, has observed in a recent note to investors that Bitcoin has failed to prove itself as a safe haven amid geopolitical tensions. However, he believes the crypto is a suitable hedge against traditional finance (TradFi) calamities such as bank collapses, de-dollarization, and U.S. Treasury sustainability issues.
Kendrick further noted that the latest pullback in Bitcoin prices should be viewed as an accumulation opportunity.
âRisk concerns related to the Middle East seem destined to push bitcoin below $60,000 before the weekend, but, positions like the $80,000 call options highlighted here and the circularity vis-Ă -vis Trump probabilities suggests the dip should be bought into,â he wrote.
Kendrick also pointed to the increase in BTC call options open interest on Deribit, with a 1,300 BTC jump in the past two days for December 27 expiry contracts at an $80,000 strike price. This suggests that more traders are betting on a year-end strong upsurge for Bitcoin, portraying a favorable market outlook for the alpha cryptocurrency.
