The price of Bitcoin has experienced significant swings and has dipped to below $62K as the conflict between Iran and Israel intensifies. Bitcoin, at the time of writing, was at $61,270 with a slight decline of 0.38% in the last 24 hours. The decline correlates to geopolitical risk but analysts are optimistic on the trend despite the drop. Others expect that Bitcoin will recover following these correctives to the previous trend.
A recent post by a technical analyst, CoinsKid, points towards a significant pattern on the Bitcoin chart. As per the analysis, Bitcoin is creating a diamond bottom pattern on the 8 hour time frame which is a major technical reversal chart pattern. This pattern normally indicates a reversal indicator that gives a view that the downtrend is over and that there might be an upward move round the corner.
Those paying attention will know I did expect a correction into the first week of October for numerous reasons. We have seen numerous buy zones tagged #xrp #crv #bitcoin to name a few.
How it’s going for #bitcoin on the diamond bottom pattern 👀
We do see a 4hr bullish… https://t.co/4PpZMLBP2h pic.twitter.com/nRdC0FUYnA
— CoinsKid (@Coins_Kid) October 3, 2024
The analyst also pointed out that there’s a bullish divergence on the four hour chart. This divergence might mean that even if the Bitcoin price has fallen, the trend could be turning bullish. As per technical analysis, bullish divergence is a clear signal towards the opposite – as the market shifts the trend from bearish to bullish. This means that Bitcoin is likely to rebound and move towards the $72,000 mark.
In his analysis, CoinsKid pointed out the importance of the first week of October. He mentioned that he expected a correction during this period due to various market factors. Several cryptocurrencies, including Bitcoin, XRP, and CRV, have recently entered key buy zones. Traders are optimistic that this zone could lead to a substantial upward movement in the coming weeks.
Bitcoin Rejected at $66K, Potential Pullback to 60K Expected
As Bitcoin keeps on trading in this consolidation period, many traders are waiting for the breakout pattern to occur. The diamond bottom pattern if confirmed could mean the beginning of a new rally. The Bitcoin support level that is crucial at the moment lies around $52,586 and if this level holds may lead to a strong upturn.
At the same time, global factors are also playing out in the cryptocurrency markets as well. Market uncertainty caused by the conflict between Israel and Iran has led to a short term bearish behaviour. This geopolitical situation has affected different categories in assets such as Bitcoin and other cryptocurrencies. However, many remain optimistic in Bitcoin’s long-term strength as it remains above the $61,000.
