- Bitcoin dropped to a local low of $59,860, pressured by Middle East geopolitical uncertainty.
- Analysts are divided on BTC’s direction, with predictions of further drops to $56,000.
- Some see potential for a recovery, citing increasing bids below $60,000 and expected macroeconomic boosts.
Bitcoin’s price fell to a new local low of $59,860 on Bitstamp, as geopolitical tensions in the Middle East continued to weigh on the cryptocurrency market. BTC/USD struggled to regain its footing after earlier losses in the week, leaving traders split on whether further declines or a recovery was ahead.
Market Divided on BTC Direction
Amid the market uncertainty, traders shared differing views on the future of Bitcoin’s price action. Popular trader and analyst Toni Ghinea argued that a further drop was likely, identifying $56,000 as the next target. Ghinea had previously pointed to $54,000 or even lower as the potential bottom of the current downturn.
On the other hand, trader CrypNuevo saw a possibility for a rebound. He highlighted that Bitcoin had reached the psychological level of $60,000, adding that a brief dip below could trigger stop-losses and liquidations before the price potentially reversed. Data from CoinGlass showed that bids were accumulating just under the $60,000 mark, while CryptoQuant reported that there was growing interest in buying Bitcoin from exchange users.
Analysts Expect “Uptober Rally” to Continue
Macroeconomic data released on the day, including U.S. jobless claims, showed no major surprises, with unemployment remaining low. Some market observers believe that the strength in the labor market could boost both traditional risk assets and cryptocurrencies. Trading firm QCP Capital emphasized the correlation between U.S. equities and crypto, suggesting that a recovery in equities could lead to similar gains in digital assets.
QCP Capital also indicated that the upcoming non-farm payroll report would be crucial for confirming the strength of the U.S. labor market. The firm expects that a combination of anticipated rate cuts and a solid labor market could help Bitcoin rally. Despite the current dip caused by tensions in the Middle East, QCP remains optimistic about a continuation of the “Uptober” rally, with an upside expected later in the month.
