It’s just a few days of October and so many noobs are panicking and selling! Ever since the price dropped below the crucial support at $63,200, the markets have dropped heavily as most of the tokens have lost more than 15% to 20% in the past couple of days.
While the ‘UPtober’ was expected to kick off, the possibility of an ‘OctoBEAR’ has been haunting the crypto markets. This could be the reason why traders did not buy at the dip at $60,000, and as a result, the BTC price failed to trigger a strong rebound.
The recent pullback has offered an opportunity for the traders to accumulate, but the traders appear to be in fear and as a result, they contributed more to selling pressure. Soon after the price dropped below the support at $63,200, the traders jumped in more numbers just to sell as the volume increased from around $35 billion to $50 billion.
However, the volume slumped to $40 billion as the Bitcoin price dropped to $60,100. Now that the price has triggered a rebound, the volume continues to drop, suggesting less interest from traders in accumulating at the drop.
What’s next for the BTC price rally? Will it plunge back below $58,000? Well, the price action appears to be in favor of bears.
A popular analyst, Justin Bennett, believes that the price is about to test the lower support at around $57,500 as the liquidity towards $70,000 is extremely high compared to the support. Hence, the price is required to sustain above these levels strongly, which may keep up the bullish hopes as a low liquidity level suggests a clean breakdown below the support zone.
Currently, the BTC price is successfully retesting the re-accumulation range low around $60,600. If this retest continues, the price may certainly not need a bearish divergence, back into the buying area below $60,000. Rather, the Bitcoin price rally may trigger and rise to reclaim the lost levels.
