In a tumultuous week for the crypto market, the price of Bitcoin (BTC) dipped below US$27,000, erasing the “Uptober” gains that had brought optimism. Will it fail?
Danger signs are starting to sound as Bitcoin faces its first real test since October 1.
Cointelegraph released data from Cointelegraph Markets Pro and TradingView tracking BTC price weakness overnight, including a trip to US$26,978 on Bitstamp.
As a result, this cryptocurrency wiped out all the profits that had accumulated during the first days of October.
Well-known trader Skew noted that the 100-day MA crossed above the 200-day MA, a “golden cross” event that traditionally marks a price increase.
“Here we have actually just experienced a death cross, so if we go down, we will likely head towards pressure to eventually test the 200D MA again before trending,” reads part of a comment on X.
The daily chart shows that the 200-day MA is acting as solid resistance for BTC despite its initial “Uptober.”
Since the death cross was confirmed on October 9, the pair lost nearly US$1,000, or 3.4 percent.
Another trader, Crypto Tony, revealed that he had taken a short position on Bitcoin when the price fell below $27,200. popular trader,
"I expect faster buybacks, this shows that the market wants to go down," he added.
Recent price behavior has reinforced a conservative view of Bitcoin's future performance.
Some analysts have even proposed a possible return to US$20,000 because Bitcoin prices have not yet had a “macro higher low” compared to the end of 2022.
Rekt Capital, a well-known trader and analyst, points out that BTC's weekly chart does not yet have a “macro higher low” and gives a potential target of around US$20,000.
This lower price point would reflect Bitcoin's behavior in the year leading up to the last block subsidy halving event in 2019.
In addition to the technical factors influencing Bitcoin prices, geopolitical tensions have added an additional layer of uncertainty.
Tensions related to the conflict between Israel and Hamas have cast a shadow on the crypto market.
The price of Bitcoin has fallen by 2.2 percent in the last 24 hours, standing at US$26,816.
Ethereum and XRP also faced downward pressure, with Ethereum falling 0.5 percent to US$1,560 and
However, some experts believe that if the United States enters a recession due to these tensions, Bitcoin could experience an increase in price.
Investors may want to protect themselves from traditional assets and currencies such as the US dollar by using Bitcoin, which in turn could provide the momentum needed for the recovery.
