Bitcoin (BTC) fell below $60,000 during the Wall Street open on October 3 as flash buyer demand occurred on exchanges.
BTC/USD 1-hour chart. Source: TradingView
Bitcoin exchange users “buy the dip” at $60,000
The new local BTC low price on Bitstamp is $59,860, according to data from Cointelegraph Markets Pro and TradingView.
BTC/USD continued to feel pressured by geopolitical uncertainty focused on the Middle East and failed to claw back losses from earlier in the week.
In response, traders were torn between further declines and $60,000, which served as a clear recovery zone.
“People who are optimistic about October are wrong,” wrote celebrity trader and analyst Toni Ghinea in a recent
Ghinea previously targeted below $54,000 as its ultimate target for the current recession.
This is the BTC/USDT 1-day chart. Source: CrypNuevo/X
Meanwhile, among those seeing a possible return to the uptrend was popular trader CrypNuevo.
“We have reached the psychological level of exactly $60,000,” he told his X followers.
“It makes sense to drop down a bit to achieve stop loss and high leverage. Liquidation before reversal. And if they see $59,000 even for a few hours, retailers will start to panic.”
BTC liquidation heatmap (screenshot). Source: Coinglass
A look at order book liquidity as per monitoring resource CoinGlass shows that bids have increased to just below $60,000 at the time of this writing.
Data from on-chain analytics platform CryptoQuant confirms that buyer interest among exchange users is already in full swing.
In one of the Quicktake blog posts from the day, contributor CryptoOnchain captured what was described as the largest total withdrawal from the exchange since the 2022 bear market.
“On-chain data shows increased Bitcoin outflows from exchanges. The 30-day, 50-day and 100-day moving averages all show this,” the post said.
Bitcoin exchange Netflow (screenshot). Source: CryptoQuant
Analysis results show BTC price returning to “Uptober Rally”
Macroeconomic data released today in the form of U.S. unemployment claims produced few surprises.
relevant: 3 Signs Bitcoin’s Q3 Close Is Bullish
Unemployment rates remain low, increasing confidence in the labor market. Observers believed this could strengthen both risk asset and cryptocurrency declines.
“Given the strong correlation between cryptocurrencies and U.S. stocks, we believe this weakness is temporary. As U.S. stocks recover, cryptocurrencies are likely to follow. This correlation highlights that macroeconomic factors are currently the main drivers of risk asset prices.” Trading company QCP Capital concluded in its latest notice sent to subscribers of its Telegram channel.
“With the ADP payrolls report beating expectations, tomorrow’s nonfarm payrolls report will be key to confirming a strong U.S. labor market. “The combination of expected interest rate cuts and a strengthening workforce could lead to an increase in risky assets.”
QCP added that it expects Bitcoin to enjoy a typical ‘uptober’ in terms of price-performance, with upside expected to return later this month.
“Despite tensions in the Middle East impacting Bitcoin during a historically strong month, we view this decline as temporary and expect an ‘uptober’ rally to prevail,” it said.
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.