Bitcoin (BTC) is on the verge of falling below $54,000 as new geopolitical upheaval takes a toll on BTC price strength.
Bitcoin traders have reduced their BTC price target below $60,000 after BTC/USD fell more than 5% in 24 hours.
BTC price target extended below $60,000.
Market nerves about events in the Middle East are more than felt in cryptocurrencies. The latest data from Cointelegraph Markets Pro and TradingView shows that the total cryptocurrency market cap fell 7.2% over two days.
This is a 1-day chart of the entire cryptocurrency market capitalization. Source: TradingView
Bitcoin reacted to the chaos in classic style, hitting support near $60,000 before a reversal.
But some traders agree that the worst is yet to come.
In his latest analysis for
“There are more confluences in my view that we will revisit the 55-57k area before a potential reversal occurs. Nonetheless, you will find long setups along the way.”
BTC/USD 1-hour chart with volume data. Source: TradingView
These levels have not been seen in BTC/USD for two weeks, but lower targets are now in effect as well.
Renowned trader and analyst Toni Ghinea said there is reason to believe that Bitcoin will not only break $60,000 but also $54,000.
“I said $BTC would make the BULL TRAP above $58,000.” He summed it up by predicting a “bearish” month for the coming October.
As Cointelegraph reported, expectations were previously overwhelming for a big rally this month, with BTC prices expected to rise by an average of 23% in October.
BTC/USD monthly returns (screenshot) Source: Coinglass
Risk Assets The “bigger picture” remains the same
Others went on to warn that additional geopolitical tensions could add to existing risk asset pressures.
relevant: 3 Signs Bitcoin’s Q3 Close Is Bullish
Trading firm QCP Capital noted in its latest bulletin for subscribers to its Telegram channel that cryptocurrencies have been “hit much harder” than oil and stocks.
“We appear to have found some support around the 60,000 level, but a further rise could take us much lower, towards the 55,000 level,” he predicted.
“Middle East geopolitics will remain in the spotlight for some time, but the shallow sell-off suggests the market is still making good bids for risk assets. These minor setbacks should not distract from the bigger picture.”
Additionally, cryptocurrency trader, analyst and entrepreneur Michaël van de Poppe is more confident about the long-term prospects.
In some of his recent X updates, he said that order book liquidity has decreased due to the BTC price flush.
“I think we are pretty close to the bottom, maybe we could sweep the bottom again at $60,000 and reverse from there,” he concluded.
“The market is a little deeper than I expected, but it’s still going as planned.”
BTC/USDT 4-hour chart. Source: Michaël van de Poppe/X
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.