The weekend rally caused Bitcoin price to shoot up by 4% and set up a local top just shy of $64K on Monday. While this move seemed like a bullish development and has caused crypto markets to, it isn’t. In the past eight hours, BTC has retraced 1.4% and will likely undo the gains. This article explores Bitcoin price prediction and what to expect next.
Bitcoin Price Analysis: What’s next for BTC?
The four-hour Bitcoin (BTC) chart shows a clear retest of the daily resistance zone, extending from $63,987 to $65,044. The rejection of this level has led to a 1.4% correction that could extend all the way toward the next stable support levels of $61,837 and $60,346.
The Relative Strength Index (RSI) hovers around 60 but has not yet touched the overbought levels yet. So, investors can expect a short-term correction that pushes BTC into the aforementioned resistance zone, allowing RSI to also pierce the overbought territory. A correction on October 9 or 10 could see Bitcoin price crash toward the $60K support level.
If BTC fails to move higher and slides lower, investors can expect some stabilization or a tug-of-war between buyers and sellers around the $60,000 psychological level. Additionally, if the dead cat bounce fails to stabilize around the aforementioned support levels, it is likely that the BTC price correction will go deeper. A sub-$60K move could see Bitcoin revisit the $57,970 to $57,201 support levels. This move would constitute a 9.6% crash from the current level of $63,166.
BTC/USDT 1-day chart
Massive upside for BTC: Analyst
In a recent post on X, Jay, an analyst, outlined his thoughts on BTC. Based on the historical data, his Bitcoin price prediction hints at a 30% rally to $77.7K by the end of October.
According to Jay, BTC has always formed a bottom three to four days into October, followed by a massive double-digit rally up to the end of the month. The highest return was observed in 2013 when BTC shot up 70% after forming a bottom on the second day.
This outlook is in line with the historical monthly return for October, which stands at 21%.
BTC October Returns
Although the above post is based on historical data, investors should take it with a grain of salt. On average, the returns for October are bullish no doubt, but there were days where BTC was up 10% or less.
Furthermore, the uncertain geopolitical conditions due to the war between Iran and Israel could have a huge impact on Bitcoin price and could stand to undo the historical pattern.
The post Bitcoin (BTC) Price Prediction for 07 October appeared first on CoinGape.
