Bitcoin (BTC) Market Enters October (Uptober) with a 7% Drop, Experts Remain Hopeful

Despite a positive close in September, Bitcoin (BTC) and the broader cryptocurrency market experienced a severe downturn as October began.

Bitcoin (BTC) and the broader cryptocurrency market experienced a severe downturn as October began, despite a positive close in September. The premier digital currency suffered a 7% drop, nurturing a wave of pessimism among investors. Yet, many experts remain hopeful about Bitcoin’s performance over the next three months.

The market initiated the month of October, colloquially termed “Uptober” by the crypto community, with a significant shakeout, losing 6.5% of its total market capitalization. Major cryptocurrencies in the top 100 witnessed noticeable price declines, although some managed to maintain green figures in daily and weekly timeframes.

Spearheading the decline was Bitcoin, the largest cryptocurrency by market cap, as its value plummeted below the $61,000 support threshold—a level unseen in almost two weeks. The downturn appeared to be exacerbated by geopolitical tensions in the Middle East, following news of an Iranian missile strike on Israel.

This incident ignited a sell-off among investors, ending an 8-day influx streak for BTC spot Exchange-Traded Funds (ETFs) and precipitating the liquidation of over $526 million in leveraged positions within a 24-hour span.

Nonetheless, numerous industry insiders appear undeterred by this market turbulence, emphasizing that October has only just begun. In a series of social media posts, crypto analyst Jelle remarked that Bitcoin historically begins its upward trajectory in the second or third week of October during bullish years.

Jelle elucidated that BTC’s price often breaks out later in the month, suggesting that the initial downturn might actually be a “final shakeout before new highs.” He underscored that Bitcoin recently achieved its first higher high in six months, regaining the crucial resistance level above $60,000.

Additionally, Jelle observed that Bitcoin made a higher low on October 1, maintaining the $60,000 support zone and retesting its stability above the $61,000 mark. He projected that it might be “time for this descending broadening wedge to start playing out,” reaffirming his previous target of $90,000.

Other analysts weighed in on the market’s shakeout as well. Altcoin Sherpa noted that the last time the market experienced this level of compression with daily Exponential Moving Averages (EMAs) was in September 2023, just before significant market gains occurred.

Conversely, analyst DonAlt advocated for a more cautious stance, suggesting that Bitcoin’s situation could appear “much worse” given current conditions, and proposed waiting until the weekly close to draw any firm conclusions.

Trader Daan Crypto Trades pointed out a recurring trend: Bitcoin has shown significant movements around the fifth day of each month since June. According to his observations, BTC’s price has seen substantial corrections on this day, except for in September, when the correction happened on the sixth day.

In the past three months, Bitcoin experienced considerable declines—16.3% in July, 25% in August, and 11% in September—from the beginning of each month up to the end of the first-week shakeout.

Should this pattern persist, investors might witness Bitcoin’s value dipping below the recently reclaimed $60,000 support level, potentially testing lower key support zones. Yet, this could also imply a potential recovery by the beginning of the second week.

As of now, Bitcoin is trading at $61,466, reflecting a 2% decrease over the last 24 hours.

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