Bitcoin has experienced a significant retracement, dropping 9.2% since reaching a local high of $66,400 on September 27.
This decline has dampened the enthusiasm of investors, which may be a positive signal for the market.
Historically, price movements in financial markets often go in the opposite direction of prevailing sentiment, and the current cooling of optimism could set the stage for a reversal.
😎 With Bitcoin retracing -9.2% since its $66.4K local high on September 27th, the crowd has cooled its excitement toward crypto considerably. This change in mood is encouraging, considering markets typically always move the opposite direction of the crowd's expectation. pic.twitter.com/UDShVi0idy
— Santiment (@santimentfeed) October 3, 2024
One key technical pattern that traders are closely watching is the descending parallel channel, which could push Bitcoin’s price down to $52,000 if the trend continues.
#Bitcoin could drop to $52,000 if the governing pattern behind the recent price action is a descending parallel channel! pic.twitter.com/CEAbdWXCrB
— Ali (@ali_charts) October 2, 2024
However, the crucial level to watch right now is $60,365. Should Bitcoin fall below this support, it might lead to a dip to $57,420. Conversely, if Bitcoin manages to hold above $60,365, there’s potential for a rebound towards $63,300.
Key #Bitcoin level to watch: $60,365!
If $BTC breaks below this, we could see a dip to $57,420. But if #BTC holds, a rebound to $63,300 is on the table.
All eyes on $60,365! 👀👀👀👀👀 pic.twitter.com/2bDJVLWBtI
— Ali (@ali_charts) October 3, 2024
Traders Keep A Close Eye On Bitcoin’s Next MovementÂ
The importance of $60,365 cannot be overstated, as it could dictate the next major move for Bitcoin. Traders are keeping a close eye on how the price behaves around this level, with both bulls and bears preparing for significant action.
In terms of institutional movements, October 2 saw a notable outflow of Bitcoin from spot ETFs, with a total net outflow of $91.76 million. Grayscale’s GBTC fund experienced a $27.31 million outflow, while ARKB witnessed an even larger outflow of $60.28 million. On the other hand, Fidelity’s FBTC ETF saw an inflow of $21.08 million, signaling that some investors remain confident in Bitcoin’s long-term potential despite the short-term volatility.
On October 2, the total net outflow of Bitcoin spot ETF was $91.7633m, Grayscale ETF GBTC outflow was $27.3131m, ARKB outflow was $60.28m, and Fidelity ETF FBTC inflow was $21.0812m. Ethereum spot ETF had a net inflow of $14.4499 million, and BlackRock ETF ETHA had an inflow of…
— Wu Blockchain (@WuBlockchain) October 3, 2024
With market dynamics in flux, all eyes remain on Bitcoin’s critical support level at $60,365.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Image Source: zerezniy/123RF // Image Effects by Colorcinch
