How low can the price of Bitcoin go?

Bitcoin (BTC)’s ‘Uptober’ got off to a rough start. In the first three days of the month, the price of BTC fell from $66,000 to less than $60,000.

Moreover, despite Bitcoin’s three-week overall uptrend, it is currently forming a bearish trend on the weekly chart, which could indicate a prolonged period of consolidation before recovery.

Let’s take a look at how low the Bitcoin price could fall if the current correction continues in the coming days and weeks.

“Golden Zone” recovery

On September 27, Bitcoin closed its daily candle higher than the previous local high, forming a bullish high (HH) pattern for the first time in five months. This was a major change in market structure and it is often ideal for an uptrending chart to form a higher low (HL) before the next uptrend.

Bitcoin is currently experiencing a bounce in the demand area between $60,500 and $57,400, which is also consistent with the Fibonacci 0.50-0.618 retracement line. The gap between 0.5 and 0.618 is often described as the golden zone where frame traders build potential swing positions.

Bitcoin is currently just above the 0.5-0.618 gap after testing the psychological level of $60,000. However, as you can see from the chart, BTC is facing resistance at the 200-EMA indicator. Therefore, the price is likely to fall below $60,000 in the coming days.

Independent analyst Dentoshi also notes that losses at the 4-hour EMA-200 indicate that BTC could fall again, highlighting a potential sweep of the lower limit of the golden zone at $57,400.

Bitcoin CME gap of $54,000

Bitcoin’s recent price rally began on September 8, after which the BTC price rose 18% to $66,140. Previously, the CME gap formed over the weekend of September 6-7 and did not fill during the rally.

As Cointelegraph reports, Bitcoin’s future CME gap has tended to be “filled” over the past quarters, with this particular gap remaining unfilled.

relevant: What is the Bitcoin CME gap and how to trade it?

Therefore, a retest of the $54,000 Bitcoin ​​CME gap should be the last pivotal range where BTC can decline without disrupting the trend of higher highs (HH) and higher lows (HL).

Looking at the Bitcoin liquidation level, the liquidation leverage of the position value of $612 million is also approximately $54,370, which is consistent with the CME gap range.

However, if BTC falls further, it is likely to fall below $52,510, which could invalidate the medium- to long-term bullish structure.

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.