The cryptocurrency market suffered a dip as Bitcoin’s price dropped to below $61,000 as tensions in the Middle East escalated. The geopolitical risk that emerged from missile attacks by Iran on Israel led to major liquidations across the board. That included BTC and other altcoins such as ETH and SOL dropping by as much as 5-15%.
Technical Analysis Points to Bitcoin Price Recovery
However, technical analysts have pointed at a possible rebound. In line with the Elliott Wave theory, Mikybull Crypto believes Bitcoin is completing its fourth wave correction. And is likely to advance in the fifth wave.
Moreover, this theory has been used before in the financial markets and it indicates that Bitcoin price could rise to above $90,000 in the near future, with this expected to start around October 22. This forecast is quite consistent with historical trends of Bitcoin as the last quarters are most often characterized by significant price growth.
Additionally, further technical analysis to support these predictions has been made using the Fibonacci extension levels. The 1.618 Fibonacci level, which is considered as a resistance level, is now at $90,000.
If Bitcoin rises above this level during its fifth-wave rally, the next target on Fibonacci projections will be the 2.272 extension at $110, 000. Furthermore, previous years’ performance supports these optimistic predictions.
Bitcoin has performed well in October with an average return of 20.66%. November has been the strongest of all the months with a 46.81% average increase while December has only averaged a 5.45% increase.
Hence, the trend indicates that if the same trends continue, Bitcoin may hit $80,518 by the end of October and $89,727 in November, while it could even cross $106,718 by the end of the year.
Cautionary Perspectives from Market Analysts
However, according to market analysts such as Ali Martinez, there are risks of a decline in the market. According to Martinez, Bitcoin may lose further ground and break through its key support level of $60,365 and trade as low as $57,000.
Furthermore, the general economic conditions affect the price of Bitcoin. Recent signs have emerged that indicate inflation may not have been as well contained as earlier believed, which may impact the Federal Reserve’s actions the next few months.
The jobs report due this month and other factors will be key drivers of the market in the near future. At press time, Bitcoin price is $61, 200, showing a modest daily increase of 1.4%.
The market cap has risen slightly by 1.15% to approximately $1.2 trillion. Despite the optimistic projections, BTC price chart shows fluctuations with dips and recoveries, suggesting volatile trading conditions.
