Bitcoin’s recent price action has some analysts worried. After a failed attempt to break through a key resistance level, things are looking a bit bearish.
A Bearish Pattern Emerges
One analyst, RLinda, has identified a bearish engulfing pattern on the daily chart. This pattern, where a new candle completely swallows the previous day’s candle, is a strong signal that the upward momentum is fading.
The recent rally, which saw Bitcoin climb close to $69,000, seems to have been a false breakout. Bitcoin couldn’t push past the $69,000 resistance zone, and it’s now back to consolidating below a descending trendline that’s been in place since March.
How Low Could Bitcoin Go?
RLinda predicts a potential correction, with the first target set at $65,000. If that level fails to hold, Bitcoin could fall further to $61,000, $58,000, and even as low as $57,000.
However, this bearish outlook isn’t set in stone. If Bitcoin manages to break above $69,400, it would invalidate the bearish structure and signal a continuation of the bullish trend.
What to Watch For
For now, Bitcoin is trading around $66,670. The next few days will be crucial in determining how Bitcoin ends October.
Here are some key levels to watch:
- Resistance: $66,500 and $65,000
- Support: $68,400, $69,400, and $71,500
