BTC Price Dips Below $27,000, Analysts Eye Crucial Levels and Predictions for Market Reversal
Bitcoin (BTC) experienced a downturn, hitting new October lows, as it slipped below $27,000 following concerns over renewed inflation fears in the United States. Analysts are now contemplating the potential rebound of BTC and predicting when the cryptocurrency might regain its upward momentum.
As of the Wall Street open on October 11, BTC marked a two-week low, with a current value of $26,781. The drop in price comes amid what some analysts are calling the “final stage” of the cryptocurrency bear market.
Bitcoin traders are closely monitoring the $26,800 support level, as data from Cointelegraph Markets Pro and TradingView revealed continued weakness in BTC prices, with bulls losing the $27,000 support. At the time of writing, the largest cryptocurrency was heading toward $26,600, with downside momentum gaining strength.
The decline was triggered by the release of United States inflation data, specifically the Producer Price Index (PPI) for September, which surpassed expectations at 2.2% year-on-year (YoY) compared to the anticipated 1.6%. This heightened concerns about persistent inflation pressures in the U.S., leading to a strengthening of the dollar and a decline in risk assets.
Michaël van de Poppe, founder and CEO of MN Trading, commented on the situation, stating, “PPI coming in hotter than expected, meaning that the DXY will probably have a bounce upwards and Bitcoin some corrections south. Still monitoring the lower boundaries here for potential entries.”
Bitcoin had already experienced a $1,000 loss since a “death cross” was completed on the daily chart earlier in the week, resulting in its lowest levels since September 29. The downturn erased the gains made in October, dispelling the notion of a “Uptober.”
Van de Poppe suggested that this could be the “final stage of the bear market for Crypto,” adding, “We might be reversing here already in October, going into an uptrend in November (retesting the $26,800 area) or we might be reversing at the end of December for a pre-halving & ETF rally. Good times are ahead for Bitcoin.”
Popular trader Skew also emphasized $26,800 as a critical level within the current range, stating, “Will wait for close but looking like a rejection so far also last area for bulls to do something imo ~ $26.8K,” in reference to the four-hour chart.
Fellow trader Daan Crypto Trades noted multi-month highs in open interest, suggesting that high levels had triggered bouts of volatility seen in the first week of the month.
Before the PPI release, monitoring resource Material Indicators indicated a lack of bid support on the BTC/USD order book on Binance, clustered around $26,650. The analysis of the YoY Core PPI report suggested an upward trend since July, raising questions about prolonged high-interest rates for risk assets.
As Bitcoin faces these market challenges, traders and analysts are carefully watching key levels and economic indicators to gauge the potential for a market reversal and the timing of Bitcoin’s next upward trend.