Bitcoin (BTC) hit six-week highs to start October, but some forecasts still see the BTC price returning to $20,000.
While up around 6% since the start of last month and now circling $27,500, Bitcoin is not fooling many with its current price behavior.
Analyst: October “should be bearish” for Bitcoin later on
BTC price strength in recent weeks has many market participants hoping for a push to — and even through — $30,000 resistance.
For some, however, there remains every reason to be cautious.
In X (formerly Twitter) analysis published on Oct. 2, popular trader and market analyst CryptoBullet reiterated that $20,000 is still very much on the radar as a BTC price target.
The latest trip to $28,600, he argued, is now forming the right-hand shoulder of a classic “head and shoulders” chart pattern — with the downside logically due to follow if it completes.
“Second half of October should be bearish imo,” CryptoBullet wrote in part of a subsequent debate.
The idea was built on an August roadmap with a short-term upside target of $28,000 before reversing toward the $20,000 target.
Right Shoulder #Bitcoin https://t.co/OTEyuaVYKx pic.twitter.com/nmMGuJ99Js
— CryptoBullet (@CryptoBullet1) October 2, 2023
Elsewhere in the debate, CryptoBullet said that the bottom zone for BTC/USD lay between $19,000 and $21,000.
Not all responses heeded his warning, with fellow popular trader Elizy, in particular, skeptical of the likelihood of such a scenario playing out.
Warning over “distribution” danger
CryptoBullet, however, is far from alone when it comes to fearing that the worst for Bitcoin is not yet over.
Related: Bitcoin traders demand ‘slow grind’ up after BTC price drops over 4%
In one of CryptoQuant’s Quicktake blog posts on Sept. 28, Joao Wedson, founder and CEO of crypto trading resource Dominando Cripto, compared Bitcoin’s performance between 2020 and 2022.
“Between 2020 and 2022, Bitcoin underwent a notable appreciation, reaching historic highs and capturing global attention. However, this phase was followed by a significant correction that caused prices to plummet, sending the cryptocurrency back to lower levels,” he wrote.
Wedson also suggested that should history repeat, sub-$20,000 levels could resurface. An accompanying chart offered a fractal, which could now be subject to a repeat.
“Now, in 2023, we are once again witnessing Bitcoin achieving over +100% in gains, attracting substantial interest from institutional and retail investors. Nevertheless, the market has recently experienced significant volatility and a downward price trend. This similarity to the past raises questions about whether we are witnessing a repeat of the previous cycle,” he continued.
“The target is $19,500 USD if this fractal holds over the next few weeks, which could result in a series of FUD and negative news in the cryptocurrency space. Furthermore, there is the possibility of a redistribution, where the price threatens significant highs, but institutional profit-taking forces the price down, creating an atmosphere of uncertainty in the market.”
As Cointelegraph reported, other sources, among them trader and analyst Rekt Capital, are demanding that bulls step up to protect support in order to avert a long-term retracement.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.