- Bitcoin’s price recently dipped below $60,000, triggering a significant buying spree among exchange users, marking the largest buying activity since 2022.
- Despite geopolitical tensions, analysts remain optimistic about a potential “Uptober rally,” predicting a recovery as buyer interest strengthens at this psychological price level.
The cryptocurrency market recently witnessed a significant event as Bitcoin prices dipped below the $60,000 mark. According to data from Cointelegraph Markets Pro and TradingView, Bitcoin reached new local price lows of $59,860 on Bitstamp. This dip triggered a substantial buying spree among exchange users, marking the most significant buying activity since 2022.
Geopolitical Tensions and Market Reactions
The BTC/USD trading pair continued to face pressure from geopolitical uncertainties centered around the Middle East. This added strain prevented Bitcoin from recovering losses experienced earlier in the week. Traders are currently divided in their opinions, with some predicting further downside while others view the $60,000 level as a critical recovery zone.
“Anyone bullish into October is on the WRONG SIDE,” popular trader and analyst Toni Ghinea commented on X (formerly Twitter), predicting that Bitcoin could next target $56,000. Ghinea had previously suggested that $54,000 or lower could be the ultimate target for the current downturn.
Optimism Amidst the Decline
Contrary to the bearish sentiment, some traders see potential for an uptrend reversal. Trader CrypNuevo pointed out the psychological significance of the $60,000 level. “We reached exactly $60,000 psychological level,” he told his X followers. He explained that dropping slightly below this mark could trigger stop-losses and high-leverage liquidations, potentially setting the stage for a reversal. “If we see $59k, even if it’s for a few hours, retail will start to panic,” CrypNuevo added.
Order Book Liquidity and Buyer Interest
Monitoring resource CoinGlass showed an increase in bids just below the $60,000 mark, indicating strong buyer interest. Onchain analytics platform CryptoQuant confirmed this trend, noting that exchange users were actively purchasing Bitcoin. In a Quicktake blog post, contributor CryptoOnchain highlighted the largest aggregate withdrawal from exchanges since the 2022 bear market. “On-chain data shows an increase in Bitcoin outflows from exchanges – all three 30-, 50-, and 100-day moving averages show this,” the post noted.
Analysts Predict “Uptober Rally”
Macroeconomic data released on the day, including U.S. jobless claims, delivered few surprises, with unemployment remaining low and boosting faith in the labor market. This, in turn, could bolster risk assets, including cryptocurrencies.
Trading firm QCP Capital shared its optimistic outlook in a bulletin to Telegram channel subscribers. “We believe this weakness is temporary, given the strong correlation between crypto and U.S. stocks. As U.S. equities recover, crypto is likely to follow,” QCP stated. They further explained that expected rate cuts and a strong labor market could boost risk assets.
Despite the Middle East tensions, QCP Capital expects Bitcoin to enjoy a typical “Uptober” in terms of price performance. “We see this dip as temporary and expect the ‘Uptober’ rally to prevail,” the firm concluded.
As Bitcoin navigates through geopolitical and macroeconomic challenges, the market’s resilience and strategic buying at key levels suggest that the cryptocurrency remains poised for a potential recovery and renewed upward momentum.
