Bitcoin faces bearish October with potential drop below $60,000.
Analysts warn of further correction, targeting $57,400 support level.
Bitcoin (BTC) has started October on a bearish note, trading at $62,277.28, with a slight 1.4% uptick in the past 24 hours, after hitting a two-week low of $59,828 just three days ago. Over the past week, Bitcoin has declined by 5%, with its trading volume down by 20%.
Despite the recent rally that saw BTC reach $66,140 on September 8, a bearish engulfing pattern on the weekly chart is forming, signaling potential consolidation ahead. Analysts suggest a possible drop below $60,000, with analysts highlighting the risk of a further dip towards $57,400âan important support level within the Fibonacci 0.50-0.618 retracement zone.
The unfilled CME gap at $54,000 also remains a critical factor, with market experts predicting Bitcoin could retest this level. Should BTC fall below $52,510, it could invalidate the bullish trend and trigger a more extended correction.
Moreover, market sentiment is cautious as investors await the U.S. September jobs report, which could influence the Federal Reserveâs interest rate decisions and, in turn, impact crypto prices. Despite the downturn, some analysts remain optimistic about a short-term recovery, citing strong demand from U.S.-based investors.
Can BTC Bulls Recover?
On the technical side, Bitcoinâs daily chart suggests a bullish trend. The 9-day Exponential Moving Average (EMA) sits at $62,814, and the Relative Strength Index (RSI) stands at 58, indicating neutral market conditions. Immediate resistance levels for BTC are set at $63998 and $68373, while downside risks could see it drop to $59211, with support at $54754.
BTC Price Chart, Source: TradingView
As Bitcoin hovers around the $60,000 mark, the coming days may determine whether the current sell-off marks the beginning of a deeper correction or a buying opportunity for traders.
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