The Bitcoin price had a promising start to October, proving the “Uptober” predictions right. However, the bears quickly took control. Today, the price dropped below the critical $27,000 level, leading to deeper losses in altcoins.
BTC, erasing its gains from September’s monthly close, has returned to square one. Skew, maintaining its optimism from previous predictions, highlighted a situation known as the “death cross,” which involves the interaction between two moving averages (MA).
Back in March, we saw the 100-day MA cross above the 200-day MA, signaling a bullish trend known as the golden cross. Now, the opposite is happening.
“We have technically experienced a death cross here, so if we move downwards, we will eventually lean towards a squeeze to retest the 200-day MA before the trend.”
The confirmed death cross on October 9 has already resulted in a $1,000 loss. In the short term, critical levels are found at $27,300 and $26,800.
“Bears have control with the loss of the 4-hour MA trend. If the price can rise above $27,300, it could mean the return of the bulls. More importantly, any recovery needs to be directed from here. Losses for BTC could deepen if it falls below $26,800.”
Skew emphasizes the approaching increase in volatility for BTC by pointing out two critical areas. On the other hand, today’s better-than-expected Producer Price Index (PPI) suggests that tomorrow’s US Consumer Price Index (CPI) could also exceed expectations. This will mainly be related to the increase in fuel prices. Moreover, with oil targeting $90 again, the upcoming October inflation data may not show significant improvement. All of these factors are negatively affecting the medium-term outlook for the crypto market.
Popular analyst Crypto Tony stated that he activated a short selling position when BTC dropped below $27,200. Another analyst, Jelle, believes that the recovery or collapse will depend on the $27,000 level.
Buyers did not take action below the critical support level, indicating weakness and the potential for further price drops, according to Jelle.
Lastly, Rekt Capital reiterated the possibility of a drop to $20,000, which was previously mentioned. According to the analyst, this level will present the last buying opportunity before the halving.