Bitcoin (BTC) Retraces -9.2% From $66.4K High, Descending Parallel Channel Pattern Could Push Price Down to $52,000

Historically, price movements in financial markets often go in the opposite direction of prevailing sentiment, and the current cooling of optimism could set the stage for a reversal.

Bitcoin price has dropped significantly over the past week, experiencing a decline of 9.2% since reaching a local high of $66,400 on September 27.

This decline hasdampened the enthusiasm of investors, which may be a positive signal for the market.

Historically, price movements in financial markets often go in the opposite direction of prevailing sentiment, and the current cooling of optimism could set the stage for a reversal.

One key technical pattern that traders are closely watching is the descending parallel channel, which could push Bitcoin’s price down to $52,000 if the trend continues.

However, the crucial level to watch right now is $60,365.

Should Bitcoin fall below this support, it might lead to a dip to $57,420.

Conversely, if Bitcoin manages to hold above $60,365, there’s potential for a rebound towards $63,300.

The importance of $60,365 cannot be overstated, as it could dictate the next major move for Bitcoin.

Traders are keeping a close eye on how the price behaves around this level, with both bulls and bears preparing for significant action.

In terms of institutional movements, October 2 saw a notable outflow of Bitcoin from spot ETFs, with a total net outflow of $91.76 million.

Grayscale’s GBTC fund experienced a $27.31 million outflow, while ARKB witnessed an even larger outflow of $60.28 million.

On the other hand, Fidelity’s FBTC ETF saw an inflow of $21.08 million, signaling that some investors remain confident in Bitcoin’s long-term potential despite the short-term volatility.

On October 2, the total net outflow of Bitcoin spot ETF was $91.7633m, Grayscale ETF GBTC outflow was $27.3131m, ARKB outflow was $60.28m, and Fidelity ETF FBTC inflow was $21.0812m.

Ethereum spot ETF had a net inflow of $14.4499 million, and BlackRock ETF ETHA had an inflow of…

— Wu Blockchain (@WuBlockchain) October 3, 2024

With market dynamics in flux, all eyes remain on Bitcoin’s critical support level at $60,365.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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