A 6% slide in Bitcoin to begin October is in keeping with its habit of posting an initial 10-15% loss before staging a recovery later in the month. The latest from DataDash encourages investors to view this as a strategic opportunity.
October’s Volatility: Historic Patterns Resurface
Traders are once again voicing the usual concerns as October gets underway and Bitcoin has posted a 6% drop. It is a case of old habits; as noted on DataDash, this kind of pressure is typical of a trend where Bitcoin is down 10-15% for much of the early month, only to make a vigorous comeback by the end. Such is the nature of the cycle and what market participants have come to expect.
Analyst’s Cautious Stance: Profit-Taking and Correction Forecast
For his part, the DataDash analyst has closed both altcoin and Bitcoin positions after seeing the cryptocurrency reach $87,000 for a new monthly high, not wanting to be caught on the wrong side of any downside. He sees the 6% decline as something of a prelude to a more substantial correction, with a retracement to $76,000 a distinct possibility. That would amount to a 10-15% pullback, a technically sound move in the analyst’s estimation and one that should prove attractive for the long-term investor.
Market Signals and Outlook Through Year-End
Yet there is no lack of optimism at DataDash when it comes to the medium term. The S&P 500’s break above 7716 has done much to allay any doubts about a Bitcoin recovery. In fact, the current dip is regarded as just one element of a bullish setup. On the strength of macroeconomic sentiment and technicals, the analyst is of the opinion that Bitcoin can be expected to make a run to $93,000 before the year is out, once the near-term correction is complete.
This article reflects the channel author’s opinion and is not investment advice.
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Source — DataDash: https://www.youtube.com/watch?v=Ymzlug5gbAo
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