Bitcoin is down as the escalation in Iran and Israel dampened sentiment. Will Bitcoin recover or drop below $60,000?
Bitcoin is under immense selling pressure.
In two days, the world’s most valuable coin is down nearly 5%, sliding from $66,000 and September 2024 highs.
The sell-off was worsened by the escalation between Iran and Israel on October 1.
Bitcoin Price Drops Amid Heightened Tensions
Last month marked a solid close to Q3 2024, and September ended up bullish for the first time in years.
As the markets prepare for a historically bullish Q4 2024 and “uptober”, eyes are on the immediate-term performance of Bitcoin.
At press time, the coin remains above $60,000. On the upper end, the resistance is at $66,000.
(BTCUSDT)
Provided prices are inside the September 2024 trade range, the uptrend remains.
Admittedly, there are cracks visible on the daily chart.
However, most analysts are bullish, expecting Bitcoin to bounce strongly in the medium to long term.
Selling Pressure In The Short-Term Is Low
Even with BTC slipping in the past two days, one on-chain analyst observes that the short-term selling pressure has been relatively low.
Specifically, the analyst notes that the quarterly profit and loss (P&L)to exchanges for short-term holders (STHs) is currently at -1,600 BTC. STHs are traders who bought the coin within the last 155 days.
At this P&L level, the analyst said holders shouldn’t be worried.
(Source)
If this reading exceeds 20,000 BTC, there will be concerns. Then, sellers will be in a prime position to press on, reversing gains.
The BTC Downtrend Remains As Long As Price Is Below $71,000
From a technical perspective, one analyst on X is worried.
The trader said the leg up that took Bitcoin above $66,000 in late September did not disrupt the seven-month sequence of lower highs and lower lows.
(Source)
As things stand, prices are within a descending channel. Accordingly, sellers of Q2 2024 remain in charge despite the general optimism across the board.
This preview will only change once there is a close above $71,000.
Technically, if this breakout is with rising volume, the uptrend will be clear, confirming gains of late Q4 2023 and the continuation of gains from November 2022.
Replying to this assessment, another on-chain trader confirmed that the mid-term structure for BTC is bearish. However, it is transitioning towards neutral.
Based on this outlook, the all-time high might take longer than expected before it is broken.
Moreover, before the uptrend resumes, Bitcoin is likely to recoil, falling lower before resuming its upward trajectory.
Even so, the analyst said Bitcoin is bullish, regardless of challenges and headwinds from fundamental and geopolitical factors.
Explore: Robinhood Wallet Expands Crypto Offerings With Solana Support
Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
