TLDR:
- Bitcoin price dropped over 5% in 24 hours, nearing $60,000 support
- Geopolitical tensions in Middle East impacting crypto and risk assets
- Some traders expect BTC to potentially drop to $54,000-$57,000 range
- Over $250 million in futures positions liquidated, mostly long positions
- October historically sees Bitcoin gains, but started with sharp decline
Bitcoin, the world’s largest cryptocurrency, experienced a sharp decline in price as October began, contradicting expectations of gains during what traders often call “Uptober.”
The digital asset’s value dropped over 5% in 24 hours, approaching the $60,000 support level. This downturn comes amidst rising geopolitical tensions in the Middle East and broader market volatility affecting risk assets.
As of the latest data, Bitcoin is trading at $62,798, according to CoinGecko. The cryptocurrency market as a whole saw its total capitalization decrease by 7.2% over two days. This sudden drop caught many traders off guard, leading to significant liquidations in the futures market.
Over $250 million in futures positions were liquidated across all cryptocurrencies in the past day, with the vast majority—$200 million—being long positions betting on price increases. This mass liquidation event highlights the unexpected nature of the market’s downturn and the risks associated with leveraged trading in the volatile crypto space.
The decline in Bitcoin’s price wasn’t an isolated incident in the crypto market. Ethereum, the second-largest cryptocurrency, experienced an even steeper fall, dropping nearly 3% to trade at $2,545. Solana, another major player in the crypto space, saw a 4% decrease, bringing its price to $150.75.
Market analysts and traders are now reassessing their price targets for Bitcoin. Some popular traders, such as Roman, suggest that Bitcoin might revisit the $55,000 to $57,000 range before potentially reversing.
$BTC 1D
Volume going up with price going down usually signifies a strong downtrend.
More confluence for my idea that we will revisit 55-57k area before a potential reversal.
Regardless, will be looking for long setups along the way.#bitcoin #cryptocurrency #cryptonews pic.twitter.com/s9dZYWOpzk
— Roman (@Roman_Trading) October 2, 2024
Others, like Toni Ghinea, have even more bearish outlooks, predicting that Bitcoin could drop below $54,000.
I said $BTC will make the BULL TRAP above 58k.
I was right.
I said it will NUKE UNDER 54K.
It's time.
IT WILL BREAK 60K NOW.
Then it will CRASH back in the 50'S
OCTOBER WILL BE BEARISH.
FOR 8 MONTHS EVERY CALL I MADE IS CORRECT.
TRUST THE PLAN.
— Toni Ghinea (@ToniGhinea) October 1, 2024
The crypto market’s downturn coincides with broader market trends. U.S. equities also experienced a sharp sell-off, while oil prices rose following the White House’s statement about expecting an attack by Iran on Israel.
These geopolitical tensions have historically led to sell-offs of “risk-on” assets like cryptocurrencies and stocks.
Despite the current downturn, some analysts remain optimistic about Bitcoin’s long-term prospects. Michaël van de Poppe, a crypto trader and analyst, believes that the market might be close to finding a bottom, potentially around the $60,000 mark.
The recent price action stands in stark contrast to the gains Bitcoin experienced in September, traditionally a weaker month for the cryptocurrency.
Last month, Bitcoin’s price rose by 9%, largely driven by the Federal Reserve’s decision to cut interest rates. This positive momentum led many to expect continued growth into October.
