Bitcoin Pullback Analysis and Outlook for October 2024
After Bitcoin’s impressive rally in September 2024, when its price rose by 7%, the market has once again shown volatility. As of October 1, Bitcoin has lost about 7.18% of its value, reaching $60,150. This pullback is due to several macroeconomic factors and investor behavior.
Macroeconomic reasons for the decline
The main factor that influenced the decline in the price of Bitcoin was the expectation of comments from the US Federal Reserve (Fed). According to Edul Patel, CEO of Mudrex, Bitcoin consolidated after the statements of the Fed Chairman Jerome Powell. He noted that the expected interest rate cuts in the future will not be as sharp as the latest 50 basis point cut. This created uncertainty in the market, as investors sought to lock in profits in the absence of clear forecasts for the future rate dynamics.
Moreover, as Avinash Shekhar, CEO of Pi42, noted, the sharp decline to $6,150 is not only due to macroeconomic factors, but also due to general profit-taking after a successful month. Despite the decline, September has been a successful month for Bitcoin, and the overall dynamics of the crypto market remain positive amid expectations of growth in late October.
Technical Analysis: Key Support and Resistance Levels
CoinSwitch analysts noted that Bitcoin is trying to hold the support level around $60,000. In the short term, Bitcoin may continue to correct, and the price may drop to $58,000 if it fails to overcome the resistance at $64,800. However, if the situation develops positively and institutional investment increases, the price may rise again.
Forecast for October 2024
Historically, October has often been a bullish month for Bitcoin, and many analysts continue to expect a recovery in the market at the end of the month. Shekhar emphasizes that October is a month when cryptocurrencies should be expected to rebound, especially given the US elections and overall improved market sentiment.
Thus, short-term corrections may create opportunities to buy on dips, especially for long-term investors. However, the market will remain volatile until the end of October, and traders should be prepared for increased volatility.
Conclusion Despite the temporary decline, the outlook for Bitcoin remains positive. Investors are closely monitoring macroeconomic indicators and statements from the Fed to decide on further actions. Experts agree that October could bring new highs for Bitcoin if the main trends continue to develop in a positive direction.