Bitcoin (BTC) has started the week on a downturn, trading in the $58,000 range after briefly surpassing $60,000. Analysts are warning of potential further corrections, particularly with the presence of a reversal zone that could influence price movement. With key economic events on the horizon this month, volatility may increase in the broader crypto market.
Analysts Predict Further Bitcoin Correction
QCP Capital researchers anticipate that Bitcoin could face more downside pressure, with the cryptocurrency likely finding strong support around the $54,000 level. This follows Bitcoin’s 8.6% decline in September, partially triggered by the Bank of Japan (BOJ) crash. Historically, Bitcoin has struggled in September, with average returns of -4.78% since 2013, according to Coinglass.
Additionally, Bitcoin ETFs, including BlackRock’s iShares Bitcoin Trust (IBIT), have underperformed. The lack of stablecoin inflows, as noted in a recent CryptoQuant report, suggests that investors are wary of further market declines.
CME Gap Adds to Short-Term Uncertainty
Daan Crypto Trades, a popular trader, has highlighted the potential for a short-term pullback due to the presence of a CME Gap near $59,000 and another gap from last week. CME gaps occur when Bitcoin’s price on the Chicago Mercantile Exchange (CME) differs between the market’s close and reopening after a weekend or holiday. Bitcoin’s price often tends to move back to fill these gaps, which could lead to short-term volatility.
Whale Activity and Economic Outlook
As market volatility continues, Bitcoin whales have been actively adjusting their portfolios. Recent data shows one whale withdrew 1,100 BTC from Binance, while another whale purchased 1,000 BTC to increase their holdings.
Looking ahead, Avinash Shekhar, co-founder of Pi42, predicts further fluctuations, especially with the upcoming **US employment report**. A strong report could temper expectations of easier monetary policy, potentially leading to increased market volatility.
As of now, Bitcoin is trading at $58,391, down 0.31% in the last 24 hours.
