Bitcoin surged to $66,000 today, fueling hopes that the long-anticipated “Uptober” rally may finally be underway. However, crypto analysts remain cautious, suggesting that BTC’s rally could be short-lived, with a potential crash to $50,000 lurking within the next 30 days before a fresh rally to a new all-time high (ATH).
Analysts Predict A Bitcoin Price Correction to $50K
Crypto analyst CrediBULL Crypto believes the current rally might be a trap. Despite Bitcoin’s surge to $66,000, the analyst argues that it’s premature to flip bullish. According to CrediBULL, the market remains in a choppy zone, fluctuating between $60,000 and $66,000, and is likely to reject at these levels before dipping further.
He anticipates an interim bounce around the $60,000 mark but warns of a deeper pullback toward $50,000. The core of his bearish outlook lies in the divergence between the spot and perpetual markets.
CrediBULL notes that the recent surge was driven primarily by perpetual contracts rather than spot buying, highlighting short liquidations as the key factor behind the upward momentum. He warns that sellers are waiting to offload their holdings at these levels, which could amplify selling pressure and trigger a sharp decline.
Similarly, BTC Insider shares a bearish outlook, asserting that Bitcoin could still drop to $50,000. He mentioned that even if Bitcoin climbs to $68,000 or $70,000, he will maintain a short position, expecting another correction.
Bitcoin’s 200-Day Moving Average Holds the Key
Another prominent analyst, Ali Martinez, believes Bitcoin is at a critical juncture. He pointed out that BTC is testing its 200-day moving average (MA) for the fifth time, suggesting that a rejection at this level could spark another crash. Martinez previously predicted a drop to $57,000, but he remains cautiously optimistic that Bitcoin could eventually reach a new ATH of $78,000.
Martinez emphasized that Bitcoin needs to hold above $65,000 to confirm a sustained bullish reversal. A CoinGape analysis echoed this sentiment, stating that a weekly close above $65,000 could open the doors for BTC to rally toward $70,000.
Also Read: Bitcoin (BTC) Surge, Liquidating Over $100 Million in Short Positions
Historical Patterns Suggest a New All-Time High Could Be Imminent
Despite the bearish warnings, there are reasons for optimism. Analysts at QCP Capital highlighted that Bitcoin is following a familiar historical pattern. In both 2016 and 2020, BTC began significant rallies just weeks before the U.S. elections, doubling in value by January of the following year. If history repeats itself, Bitcoin could be on track to achieve a new ATH by early 2024.
Bitcoin Rally or Another Correction?
While Bitcoin’s climb to $66,000 has reignited bullish hopes, market analysts caution that the flagship cryptocurrency might not be out of the woods yet. The risk of a correction to $50,000 remains, but if BTC can maintain key support levels, a new ATH may be within reach. With volatility likely to persist, all eyes are on Bitcoin’s price action in the coming weeks as traders brace for either a breakout or another dip.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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