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The beginning of October on the crypto market has seen a lot of pressure, taking Bitcoin (BTC) quotes 7.72% down to the $60,000 mark. In addition, the rest of the digital assets, with the exception of the main cryptocurrency, lost a total capitalization of almost $200 billion.
Now, analysts like Ali Martinez are pointing to a bearish pattern that could see the major cryptocurrency fall to $52,000. The condition under which this is possible is if the descending parallel channel that Bitcoin has been trading in since early spring becomes the dominant pattern.
Gamza KhanzadaevA descending parallel channel is a chart pattern characterized by two descending trendlines that frame the price action of an asset. This formation usually indicates bearish sentiment as the price moves within a limited range.
In this scenario, traders make sure that the price stays below the upper trendline, while frequently testing the lower trendline. When the price breaks below the lower trend line, it often signals further declines.
Bitcoin (BTC) price outlook
After failing to break above the upper boundary at over $66,000, the price of Bitcoin has turned lower. The current price action suggests that Bitcoin may be following a scenario where it is being pulled toward the lower boundary of this range. In such a case, the importance of the $52,000 level lies in its historical significance as a key support zone.
If Bitcoin does not hold above this level as well, there could be a wave of selling that leads to further declines. That is why market participants are watching the situation closely, as they think about ways to eliminate risk.
Tomiwabold Olajide
Vladislav Sopov
Dan Burgin
U.Today Editorial Team