Bitcoin and Altcoins Crash In Major Shakeout Before ‘Uptober’ Rally

The broader cryptocurrency market has come under strong selling pressure amid the anticipation of a bullish October. Bitcoin and altcoins came crashing down further on Wednesday while testing key support levels. Ripple’s native crypto XRP faced the biggest drop at 11% as the U.S. Securities and Exchange Commission (SEC) filed a notice to appeal the court decision in the Ripple lawsuit.

Bitcoin Can Face Another Shakeout

The Bitcoin price has been under selling pressure in the last two days following the escalating tensions in the Israel-Iran conflict. Amid the news of Israel’s imminent response to Iran’s attack, the BTC price took a plunge earlier today to $60,300 before bouncing back above $61,000 as of press time. Speaking on the development, popular crypto analyst IncomeSharks noted:

“Too many knife catching the first dip as if it was going to be one red day then Uptober. You always wait longer than you think. A lot talking about $59k so it’s best to just get that out of the way. Overcrowded area to bid so $57k is my best guess”.

Some of the other market analysts have been predicting an even steeper correction of more than 15% from the current levels. As of now, BTC is trading around the median support levels of its descending trading channel i.e. $60.900. If the bulls fail to hold this support, it will open the gates for a further plunge to $52,000.

#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB

— Ali (@ali_charts) October 2, 2024

Another crypto market analyst Crypto Capo noted that if BTC tanks to $52,000, he expects the ETH price to plunder to $1,800 stating that he would be adding more altcoins to his bag at that time.

Altcoins Brace for the Sell-off

The latest reports also suggest that if Kamala Harris adopts a 25% unrealized capital gains tax structure, it might trigger a major sell-off across the crypto market. In this case, the altcoins could crash even further ahead.

As of press time, the Ethereum price is down 3.58% slipping under $2,400. Other altcoins like Solana (SOL), Dogecoin (DOGE), and Toncoin (TON), have corrected by a similar magnitude. Ripple’s XRP faces the biggest fall following the SEC appeal. However, reports also suggest that Ripple is planning for a cross-appeal in the XRP lawsuit.

On the other hand, SUI and Aptos have defied the broader market correction with each gaining more than 10% in the last 24 hours. As the SUI Network TVL crosses $1 billion, the SUI Price is gearing for a fresh all-time high in the latest surge.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.