Bitcoin Traders Shift Tactics Targeting New Lows Below $60K

Traders concur that Bitcoin's short-term price outlook is firmly tilted toward the downside.

Source: www.cnbc.com

Bitcoin experienced a $6,000 decline between September 29 and October 3, hitting a two-week low of $59,860. Based on the intraday price movements, it seems this downward trend may persist. The recent sell-off, fueled by escalating geopolitical tensions in the Middle East, has caused the price to break through significant support levels, including the 50-day exponential moving average (EMA) at $61,318 and the 100-day EMA at $61,438.

Bitcoin still appears to be heading lower, stated Bitcoin analyst AlphaBTC in an October 3 post on X. The analyst pointed to Bitcoin's performance since September 29, when it retreated from highs of $66,071, erasing some of the gains from FOMO buying following its recovery from the September 6 local low of $52,546. AlphaBTC noted that considering the current geopolitical situation and emerging weakness in US economic data, Bitcoin's price is likely to continue its decline. Another analyst Crypto Rover echoed these concerns, warning that Bitcoin traders could find themselves in a precarious position if the $60,000 support level is lost.

In a previous post, AlphaBTC presented two potential scenarios for Bitcoin's short-term price movements. The first scenario is bullish, suggesting that Bitcoin could establish a double bottom pattern around the 61.8 Fibonacci level at $61,370, leading to a V-shaped recovery toward $70,000. Conversely, the bearish scenario indicates a breakdown below the $60,000 support, potentially driving the price down to $58,000. Given the current market behavior, AlphaBTC has set a short-term target range for Bitcoin between $57,500 and $61,300.

Other analysts are predicting even steeper corrections, with targets ranging from $58,000 down to $52,000. Independent trader Emperor Keo Xplus has set a bearish target at $52,000, emphasizing that $63,000 is a crucial level for bullish sentiment. Similarly, pseudonymous analyst Crypto Patel noted that if the $60,000 support fails, the bears' next target would likely be $55,000.

200-Day EMA The Final Line of Defense For Bitcoin Price

Data indicates that Bitcoin's price action has created a series of higher lows on the daily chart, maintaining its position above the ascending trendline. It’s crucial for Bitcoin to stay above this level to prevent a deeper decline.

The presence of a doji candlestick on the daily chart highlights the significance of the $60,000 mark for both buyers and sellers. If the bulls fail to maintain their position, they may find themselves retreating toward the 200-day exponential moving average (EMA), which currently serves as the last line of defense at $59,890. This scenario suggests that strong demand in this zone could enable BTC to overcome resistance from the 100-day and 50-day EMAs, potentially halting the current sell-off.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.