Bitrabo Editorial
Currently, Bitcoin is experiencing a decline, dropping about 8% from its September peaks. After two consecutive days of losses, BTC is entering the fourth quarter of 2024 on a weak note, raising concerns about prices potentially falling below $60,000, revisiting lows from August and September.
Bitcoin’s Decline: Are We Seeing Q4 2024 Lows Near $60,000?
An analyst on X has expressed positivity regarding Bitcoin, despite it hovering at a precarious position. In their post, the analyst mentioned that this recent downturn should be interpreted as a positive sign. They believe that, despite the challenges faced by holders in early October 2024, Bitcoin is likely forming the lows for Q4 2024.
The analyst further explained that Bitcoin often establishes significant highs or lows early in a trading period, in this case, for Q4 2024. Although recent escalations in the Middle East could cause some disturbances, they believe Bitcoin will remain largely unaffected—resulting in a potential price boost. They anticipate an increase in liquidity in the upcoming months, likely driving prices up.
After a strong September that saw prices reach $66,000, Bitcoin is now on the decline. Typically, September has been a difficult month for Bitcoin, but it concluded with a 7% increase, bouncing back from earlier losses and closing above important liquidation levels around $65,000-$66,000.
Could BTC Repeat August and September Price Movements?
Market sentiment is optimistic since Bitcoin is trading at levels similar to those seen in early August and September. Prices hit a low of $49,000 in the first week of August, but began a gradual recovery over the next three weeks. Subsequently, in early September, the price dipped again to about $52,000 before continuing its upward trajectory established in August.
It remains uncertain whether the patterns observed in early August and September will repeat, but the optimism persists. According to a sentiment analysis on CoinMarketCap, a majority of Bitcoin holders are bullish, with over 60% forecasting a price increase, while 38% anticipate downward pressure from sellers.
Factors that may support bullish sentiment include capital inflows into spot Bitcoin ETFs. Data from Soso Value indicates that following Bitcoin’s price drop on October 1, BlackRock acquired over $40 million worth of Bitcoins.