Bitcoin has experienced its most significant long liquidation of the year, reflecting a considerable loss of momentum among bulls in the market. On Monday, Bitcoin (BTC) dipped to $111,800 but has since rebounded slightly above $112,700. This sharp decline was attributed to the liquidation of leveraged positions, leading to a staggering $1.62 billion in long liquidations within a 24-hour period, as reported by CoinGlass.
Despite this downturn, some analysts remain optimistic. Historical data indicates that Bitcoin has shown resilience in October, rising 10 out of the past 12 years during this month, with the last decline occurring in 2018. Analysts suggest that if history holds, BTC could see new all-time highs this October.
In addition to historical trends, market sentiment is buoyed by a policy shift from the US Federal Reserve. Economist Timothy Peterson has noted that markets may be underestimating the speed of potential rate cuts, which might lead to a significant upward movement for Bitcoin and altcoins within the next three to nine months.
As the broader cryptomarket struggles, various altcoins are fighting to maintain their support levels amidst potential selling pressures on any upward rallies.
In parallel market updates, the S&P 500 Index reached new heights, indicating resilient bullish activity. The index may reach a targeted resistance of 6,700, while dips could find support at the 20-day exponential moving average around 6,550.
The US Dollar Index (DXY) also demonstrated signs of life, rebounding from its support level at 96.37. A failure to rise above key moving averages might see DXY testing the 95 mark again, while a break above could indicate a recovering trend.
Back to Bitcoin, it has faced challenges rising past the $117,500 resistance, prompting selling from short-term investors. There is a range of predicted movements: if Bitcoin breaks below the key support level at $107,000, it could drop to $100,000. Conversely, a successful move above $117,500 might lead it toward $124,474 and potentially to $141,948 if momentum builds.
In the case of Ether (ETH), it fell beneath a symmetrical triangle pattern, highlighting bearish sentiment. Should ETH maintain above the current level of $4,060, buyers may attempt a recovery, but selling pressure at $4,442 could limit gains. XRP also experienced a dip to $2.69, with significant buying observed at this level. A rally above the downtrend line is needed for a bullish reversal.
For BNB, the price has pulled back from a recent high of $1,083; a correction to the 20-day EMA of $945 is possible, with future upside contingent upon overcoming the $1,083 barrier. Meanwhile, Solana (SOL) is vulnerable after pulling back beneath its moving average, with critical support at the uptrend line.
Dogecoin (DOGE) has slipped below significant support levels, and unless the bulls reconquer these zones, it may languish within a constrained price range. Cardano (ADA) has also seen negative sentiment, having broken down from a triangle pattern.
Overall, while Bitcoin and several altcoins grapple with volatility and potential selling pressure, upcoming historical trends and economic shifts suggest there may be opportunities for recovery. Investors are urged to remain vigilant and conduct thorough research in these fluctuating markets.
