Is This The ‘Shakeout Before Breakout�?

The market began the month of October, popularly known as “Uptober�?by the crypto community, with the first shakeout of the quarter, losing 6.5% of its market capitalization. Most cryptocurrencies in the top 100 saw a considerable price drop, registering green numbers in the daily and weekly timeframes.

The bleeding was led by Bitcoin, the largest cryptocurrency by market cap, as its price nosedived below the $61,000 support zone, a range not seen in nearly two weeks. Geopolitical conflicts in the Middle East seemingly fueled the downturn, as the drop followed the news of an Iranian missile strike on Israel.

The news spiked an investors�?selloff, which ended the BTC spot Exchange-Traded Funds (ETFs) 8-day inflow streak and triggered the liquidation of over $526 million in leveraged positions in the last 24 hours.

Nonetheless, many industry watchers remain unfazed by the market shakeout, noting that the month has just started. In a series of X posts, crypto analyst Jelle pointed out that Bitcoin started its second leg higher during October in the past bull years.

He explained that BTC’s price historically breaks out in the second or third week of the month, so the first week retrace could be the “final shakeout before new highs.�?Moreover, he highlighted that the flagship crypto recently made the first higher high in 6 months and reclaimed the key resistance level above $60,000.

Jelle also noted that BTC made a higher low on October 1, holding the $60,000 support zone and retesting its strength above the $61,000 mark. The analyst considers that “It’s time for this descending broadening wedge to start playing out,�?reasserting his previous target of $90,000.

Analyst Warns About Bitcoin ‘Fifth-Day Plunge�?/h2>

Other analysts also shared their views on the market shakeout. Altcoin Sherpa highlighted that “the last time we saw this much compression with 1d EMAs was September 2023, right before the market skyrocketed.�?/p>

Meanwhile, DonAlt expressed a more cautious approach, stating that Bitcoin could look “much worse�?considering the circumstances, but suggested waiting for the weekly close would be best to conclude.

Nonetheless, trader Daan Crypto Trades pointed out that Bitcoin has “bottomed/topped at basically the same time�?since June. Per the post, on the fifth day of each month, BTC’s price has registered a massive correction, except for September, when it occurred on the sixth day.

During the Q3 retraces, BTC registered daily red candles ahead of the fifth-day plunge. The price recorded a 16.3%, 25%, and 11% decline in July, August, and September from the beginning of each month until the end of the first-week shakeout.

If the pattern repeated this month, investors could see BTC’s price dropping below the recently reclaimed $60,000 support level and test the strengths of lower key support zones. However, it would also mean that the flagship cryptocurrency would potentially recover by the start of the second week.

As of this writing, BTC is trading at $61,466, a 2% drop in the last 24 hours.

]]> 645977 //wncen.com/news/bonk-in-prime-position-for-turbo-green-week-as-price-recovers-key-level/ Wed, 02 Oct 2024 07:00:49 +0000 //wncen.com/?p=645792 Bonk continues its bullish rally as ‘Uptober�?begins, sparking a bullish sentiment among investors after the recent fear of a major pullback. The memecoin sensation kickstarted its Q4 journey positively, reclaiming crucial levels, with investors and crypto analysts forecasting a green weekly close.

BONK Closes Q3 With 13% Surge

Bonk has seen a remarkable performance throughout the past two weeks, jumping 60% since September 15. The memecoin broke above the multi-month downtrend line after successfully reclaiming the $0.000022 resistance level last Friday, registering a 38% surge in the past week.

Additionally, the dog-themed sensation closed the month 48% above its opening price, revisiting levels before August’s Black Monday. The token also saw a 13% increase from its Q3 opening, trading around $0.000025 as October started.

This bullish price action propelled BONK’s price above $0.000026 momentarily before retracing back the $0.000024 support level, which some considered an extremely bullish signal for the token’s future price action.

According to crypto trader Astekz, BONK’s monthly reclaim meant that “any consolidation�?above the breakout level is “giga bullish.�?Moreover, the token had a 13% increase in daily market activity in the past day, registering a daily trading volume of $795.3 million.

Is A ‘Turbo Green Week’ In The Making?

Crypto analyst Bluntz noted that, alongside all the strong memecoins, BONK had a “swift�?recovery from the weekly dip following a “perfect abc pullback.�?This performance put the memecoin “in prime position for a turbo green week,�?which he further predicted after its Monday performance.

To Bluntz, BONK is close to a breakout after spending three days of sideway moves. Additionally, the token reclaimed the 200-day Moving Average (DMA), which had been sitting above it for the past day.

The trader considered that the token’s next parabolic run could be “sustained�?and target the $0.000035 resistance level soon. Other market watchers echoed this sentiment, highlighting BONK’s strength throughout the recent dips.

Another analyst noted that the memecoin has moved within a large symmetrical triangle since its March all-time high (ATH). The trader detailed that the token’s price is moving closer to the pattern’s resistance since forming a triple bottom at $0.000016.

A breakout from the multi-month pattern could send the token’s price to a potential 70% rally toward the previous ATH of $0.000045. Additionally, some investors believe that the cryptocurrency could be positively affected by the market’s general performance this �?a href="//wncen.com/breaking-news-ticker/uptober-outlook-why-bitcoin-could-reach-98000-following-bullish-september/" target="_blank" rel="noopener ">Uptober.�?/p>

Last October, the cryptocurrency started a massive rally that shredded two zeros from the token’s price, closing Q3 2023 at $0.00014, a 6,900% surge. However, the BONK registered a price decline in the last few hours following Bitcoin’s dip to $62,000.

As of this writing, the memecoin is trading at $0.00023, a 2.9% drop in the daily timeframe.

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