Bitcoin’s price recently rose above $61,000, driven by significant outflows from U.S. spot Bitcoin ETFs. Although October started off challenging for the cryptocurrency market, causing Bitcoin to fall 7% from its earlier high of $66,000, this recent increase brings a sense of optimism. Matthew Dixon, CEO of Evai, warns that Bitcoin might experience another dip before it can recover significantly.
He shared a chart similar to one from 2022, suggesting that one final pullback might be necessary before prices begin to rise again.
It’s not looking good for the king of crypto. Here’s how to prepare.
A Familiar Pattern Emerges
In a recent tweet, Dixon revisited his 2022 analysis of Bitcoin, where he correctly predicted a drop before the cryptocurrency saw a recovery. Drawing parallels to the current market, Dixon believes Bitcoin is now following a smaller fractal pattern that mirrors the previous scenario.
This suggests that Bitcoin might still face one more decline before completing its correction phase. Dixon’s analysis points out that Bitcoin has been showing signs of volatility.
But, there’s still hope!
Despite the potential for a short-term decline, Dixon remains hopeful about Bitcoin’s future. He predicts that after this correction, a significant upward trend could follow, restoring investor confidence in the market.
Mixed Market Sentiment
Polymarket a decentralized prediction market platform has shown mixed sentiment about the bettors who are betting on bitcoin price movement for October. However, bettors seem to be splitting while a spike to $70,000 seems unlikely, many believe Bitcoin will stay between $57.5K and $65K.
Historical data from CoinGlass indicates that Bitcoin usually sees its biggest gains later in the month. The first week often starts slowly, with the second and third days of October ending in the green only six times since 2013. However, after the second week, Bitcoin often recovers, with price jumps of up to 16% commonly occurring after October 15.
As of now, bitcoin is trading around $61,237, reflecting a slight rise in the price with a market cap of $1.2 trillion.
As the crypto world braces for potential volatility, the question remains: will Bitcoin’s next move be a giant leap forward or a stumble back?
Source: https://coinpedia.org/news/bitcoin-price-analysis-understanding-market-trends-and-future-prediction/