Bitcoin is currently forming a weekly #BEARISH📉 engulfing candle, which could signal a price drop to support levels of $57,800 and $54,500.
Challenging Start to Bitcoin's "Uptober"
#Bitcoin’s "Uptober" has had a rough beginning. In the first three days of the month, BTC’s price dropped from $66,000 to below $60,000. Despite a three-week general uptrend, bitcoin is now forming a bearish engulfing pattern on the weekly chart, indicating that a longer consolidation period may occur before any potential recovery.

Let’s explore how low bitcoin’s price might fall if the current correction continues in the coming days or weeks.
Return to the "Golden Zone"
On September 27, bitcoin ( #BTC☀ ) closed a daily candle above its previous local high, marking the first higher high (HH) in five months. This was a significant shift in market structure, and for bullish charts, it is often ideal to form a higher low (HL) before continuing upward.
#bitcoin☀️ n is currently experiencing a bounce from the demand zone between $60,500 and $57,400, which aligns with the Fibonacci retracement levels of 0.50–0.618. This range is often referred to as the #GoldenZone where high-time-frame traders build potential swing positions.
Bitcoin is now sitting just above the 0.50–0.618 zone after testing the psychological level at $60,000. However, as shown in the chart, $BTC is facing resistance from the 200-day EMA, which increases the likelihood of a drop below $60,000 in the coming days.

Dentoshi, an independent analyst, also points out that losing the 4-hour EMA-200 indicates that BTC may dip further, warning of a potential sweep to $57,400, the lower range of the golden zone.
CME Gap at $54,000
Bitcoin’s recent price rise started on September 8, pushing BTC up 18% to $66,140. However, over the weekend of September 6-7, a gap formed in the CME futures that was not filled on the way up.

Many traders have noted that bitcoin CME futures gaps tend to get "filled" over time. This particular gap remains unfilled, and retesting the $54,000 CME gap would be a key level for BTC to reach without breaking its higher high (HH) and higher low (HL) trend.

Potential Test of Key Levels
In addition to this, around $54,370 lies $612 million in liquidation leverage positions, aligning with the CME gap range. However, if bitcoin drops further, it risks falling below $52,510, which would invalidate its mid- to long-term bullish structure.

Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“