Today, Bitcoin briefly dropped below $59,000, hitting a low of $58,900. While this might have caused some concern, it could actually be a chance to pick up Bitcoin at a discount, as the bull-run could be continuing, or will it?
Market intelligence platform Santiment shared their thoughts on X, saying, “Bitcoin has dropped as low as $58.9K today, returning to a 3-week low. However, traders are identifying this as a dip buy opportunity.” This more optimistic outlook emerged after the latest US CPI report, which hints that we might still see some rate cuts soon.
https://twitter.com/santimentfeed/status/1844467892194308252
According to analyst Rekt Capital, Bitcoin is retesting the Weekly Re-Accumulation Range Low (~$60,600) as support for the second week in a row. Rekt Capital explains that a weekly close above $60,600 would help maintain the current range and potentially set Bitcoin up for a move higher. However, if Bitcoin loses support at this level, we could be in for another downside deviation period.
Bitcoin is retesting the Weekly Re-Accumulation Range Low (~$60600) as support for the second consecutive week
Weekly Close above $60600 would preserve the range and position price for a move to the upside across it
Lose support here –> another downside deviation period… https://t.co/wk5bBdyOMC pic.twitter.com/j6nfUIih8b
— Rekt Capital (@rektcapital) October 10, 2024
Traders Growing Impatient with the Market’s Sideways Movement
Many traders and analysts, though, are starting to feel a bit impatient, especially as we’re now six months out from the latest Bitcoin halving event. Historically, Bitcoin has tended to spike in price around this time. As Ki Young Ju, CEO of CryptoQuant, pointed out, “285 days have passed in 2024. If there is no #Bitcoin bull market within the next 14 days, this will be the longest sideways in a halving year in history.”
285 days have passed in 2024. If there is no #Bitcoin bull market within the next 14 days, this will mark the longest sideways in a halving year in history. pic.twitter.com/JWHkgHC27C
— Ki Young Ju (@ki_young_ju) October 11, 2024
Leverage Hits a Yearly High, Increasing the Risk of Big Price Swings
Not everyone is convinced we’ll see an immediate jump. On-chain analyst Ali Martinez urged caution, sharing a chart that highlights a spike in leverage use on crypto exchanges. He explained, “Leverage use on #crypto exchanges just hit a yearly high, meaning more people are borrowing to make bigger bets. This can increase the risk of big price swings, so it’s important to be cautious!”
Leverage use on #crypto exchanges just hit a yearly high, meaning more people are borrowing to make bigger bets. This can increase the risk of big price swings, so it’s important to be cautious! pic.twitter.com/InUbp7g2x3
— Ali (@ali_charts) October 10, 2024
Friday Economic Data Could Sway Bitcoin Price
As we head into the weekend, there are key U.S. economic reports due on Friday that could affect Bitcoin’s price. The U.S. PPI Inflation report will show us how producer prices are changing, which can influence inflation expectations—and by extension, Bitcoin’s role as a hedge. There’s also the GDP revision, which could either boost confidence in the economy or make Bitcoin more appealing if the revision points to slower growth.
Right now, the Bitcoin Fear and Greed Index sits at 32, signaling “Fear.” With Bitcoin’s typical volatility, we could be looking at a very different picture by the end of the weekend.
At time of writing, Bitcoin is moving hands at $60,635, just a small fraction above the $60,600 support level mentioned by Rekt Capital.