Bitcoin (BTC) has been enjoying a successful run so far in October, surging to a 6-week high above $28,000. However, some analysts caution the rally could reverse by month’s end, giving way to a significant price correction.
After starting October strong, Bitcoin sits at around $26,000 at press time. While bullish sentiment prevails for now, experts urge restraint given the chance of a downturn.
Popular analyst CryptoBullet points to a developing head and shoulders pattern as evidence Bitcoin could decline dramatically in the second half of October. He suggests BTC could drop to a range of $19,000-$20,000, designating it as a “buy zone for those who missed the bottom last year.”
CryptoBullet’s prediction echoes a late-September analysis from CryptoQuant. The firm argued Bitcoin often sheds value after major gains, similar to its performance in 2020 and 2021. They believe this cycle may repeat based on current volatility.
Though gloomy short-term, analysts say bullish investors could prevent a lasting drop. But preventing a retracement below $19,000 will require actively holding the line.
Lingering fears persist that negative news could compound selling pressure on Bitcoin. While disputed, many expect at least some institutional profit-taking resulting in a decline.
For now, the path forward remains uncertain. However, analysts argue evidence points to Bitcoin stabilizing in October before kicking off a fourth-quarter rally. That makes the coming weeks crucial for bulls to defend against a long-term trend reversal that could erase recent progress.
