- Analysts predict darker days for BTC despite a strong start to October.
- They hinge their prediction on a classic head and shoulders pattern and cyclical trends from the end of 2020.
- Bulls are expected to step up to sustain the current momentum to avert another slump for the asset.
Bitcoin (BTC) is currently basking in the warmth of its recent victories in October, but some analysts submit that the asset class could end the month on a low.
Bitcoin, the largest virtual currency by market capitalization, surged to a new six-week high after clinching $28,000 at the start of October. The strong start to the month sent a wave of optimism across the ecosystem, with bulls keeping their eyes peeled on a $30,000 price point.
While enthusiasm runs high, a cross-section of analysts are urging investors to hold their horses over the grim prospects of a massive correction. Popular analyst CryptoBullet shared his views on the future prospects of the asset pointing to a developing head and shoulders pattern on the asset chart as evidence of a slump.
CryptoBullet pointed out that the decline could begin as early as the middle of October running all the way to the end of the month. The on-chain analyst opined that the BTC lows could hover between the $19K – $20K mark, designating it as a “buy zone for those who missed the bottom last year.”
“Second half of October should be bearish imo,” wrote CryptoBullet on X. The recent predictions come on the heels of an earlier forecast in August that seemingly predicted highs around $28,000 before tumbling to $20K.
CryptoBullet’s assertions mirror a similar prediction from a submission from CryptoQuant at the tail end of September. According to their report, the on-chain analytics firm suggested that BTC may follow its cyclical trend of losing a chunk of its valuation after a major surge as seen in 2020 and 2021.
“Now in 2023, we are once again witnessing Bitcoin achieving over +100% gains, attracting substantial interest from institutional and retail investors,” said CryptoQuant. “Nevertheless,the market has recently experienced significant volatility and a downward price trend. This similarity to the past raises questions about whether we are witnessing a repeat of the previous cycle.”
Bulls have to step up to hold the line
Analysts argue that BTC’s near future appears gloomy, but bullish investors have a slim window of opportunity to prevent a slump. One expert calls for bulls to hold the line to prevent a long-term retracement that could potentially send the asset well below $19,000.
There are lingering fears that a streak of negative news in the space could send BTC spiralling to new lows. While there is some dissent, the general consensus is for investors to brace for a measure of institutional profit-taking as the search for a silver lining in the cloud continues.
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