Bitcoin (BTC) hit a six-week high from October, but some predictions still see BTC prices returning to $20,000.
While Bitcoin is up about 6% since the beginning of last month and is now at $27,500, Bitcoin’s current price action isn’t fooling many.
Analyst: Bitcoin ‘should be bearish’ after October
BTC price has strengthened in recent weeks, with many market participants hoping for a break or even a break above the $30,000 resistance level.
However, for some, there are still good reasons to be cautious.
In an X (formerly Twitter) analysis published on October 2, popular trader and market analyst CryptoBullet reiterated that $20,000 remains a closely watched BTC price target.
He believes that the latest move to $28,600 is now forming the right shoulder of the classic “head and shoulders” chart pattern – if completed, a downward trend would logically follow.
“In my opinion, the second half of October should be bearish,” CryptoBullet wrote in the ensuing debate.
The idea is to build on the August roadmap, with a short-term upside target of $28,000 before moving to the $20,000 target.
right shoulder #bitcoin pic.twitter.com/nmMGuJ99Js
— CryptoBullet (@CryptoBullet1) October 2, 2023
Elsewhere in the debate, CryptoBullet explain The bottom area for BTC/USD lies between $19,000 and $21,000.
Not all responders heeded his warning, especially popular trader Elizy, skeptical the possibility of this happening.
Warning about the dangers of “distribution”
However, CryptoBullet is far from alone in worrying that the worst is not yet over for Bitcoin.
RELATED: Bitcoin Traders Demand ‘Slow Grind’ After Bitcoin Price Drops Over 4%
In one of CryptoQuant’s Quicktake blogs post On September 28, Joao Wedson, founder and CEO of cryptocurrency trading resource Dominando Cripto, compared the performance of Bitcoin in 2020 and 2022.
“Between 2020 and 2022, Bitcoin experienced significant appreciation, reaching all-time highs and attracting global attention. However, this phase was followed by a major correction that caused the price to plummet and returned the cryptocurrency to lower levels,” he wrote.
Wedson also said that if history repeats itself, sub-$20,000 levels could return. The accompanying chart provides fractals that may now be repeated.
“Now, in 2023, we are once again witnessing Bitcoin achieve over 100% gains, attracting huge interest from both institutional and retail investors. However, the market has recently experienced significant volatility and downward price trends. This is similar to the past. Sex raises questions about whether we are witnessing a repeat of the last cycle,” he continued.
“If this fractal holds true in the coming weeks with a target of $19,500, this could lead to a flurry of FUD and negative news in the cryptocurrency space. Additionally, there is the possibility of a redistribution where the price threatens to move significantly higher, but institutional Profit-taking forces prices down, creating an atmosphere of uncertainty in the market.”
As Cointelegraph reported, other sources, including traders and analyst Rekt Capital, asked bulls to step up protective support to avoid a prolonged pullback.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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