Is Bitcoin Price Correction Over?

Bitcoin has crashed 10% in the past four days, dropping from $66.8K to $61K. This sudden drop has left investors wondering if the Bitcoin price correction is done. In this article, let’s explore what BTC technicals and on-chain metrics suggest and what popular crypto analysts expect Bitcoin to do in the next few days.

Will Bitcoin Price Correct or Reverse Here?

Since the September 27 swing high of $66,498, Bitcoin price has shed 9.50% and trades today at $60.3K. Thursday’s Asian trading session saw an uptick, but in the London session, BTC is down 2.05%, 

Popular crypto analyst Crypto Capo noted that the crypto market was “looking heavy” and he “wouldn’t rule out a final shakeout.” Capo expects another 10% to 20% correction for Bitcoin. Considering the current level of $60.2K, this drop would push BTC down to the $48K to $54K range. The analyst ended his analysis by saying that he was “not selling my positions, but hedging. Just in case.”

Unlike Capo, Trader Mayne, co-founder of Breakout prop trading firm, believes that there could be a bounce. Mayne adds that he wouldn’t mind “bidding” BTC between $60.2K and $58K and expect a run up to $61K to $63K. However, he did warn that a new high time frame low could be on the way unless Bitcoin reclaims the $65K level decisively. 

RektProof posted his Bitcoin game plan to X and expects a bounce between the $59.2K to $57.2K region. The resulting rally, according to RektProof, should propel BTC price to $70,000 or higher. 

Current gameplans

Looking for price to form a short term range here and look for intraday shorts down into demand for HTF Swing longs for new highs

Patient for now#Bitcoin pic.twitter.com/9axoqVl8tK

— RektProof. (@RektProof) October 2, 2024

BTC Price Forecast: Now or Never

If the crypto market outlook has changed and the historical Q4 performance has kicked in, then a Bitcoin price bounce should happen around $59.4K, which is the yearly VWAP and also critical support. This move would keep the uptrend intact and provide BTC bulls with a foothold to decisively overcome the $64K to $65K hurdle. However, a failure from bulls here could send BTC down the $57.2K to $57.9K support levels, which is the last chance to keep the bull trend dream alive.

Regardless, investors must expect one or two scenarios to play out:

1. BTC price bounces from $59.4K but fails to overcome the $63K hurdle, leading to a correction to the 50-week Exponential Moving Average (EMA) at $55K or lower.
2. Bitcoin price bounces from $59.4K and overcomes the $65k resistance level, restarting the bull run. Such a development could even see the pioneer crypto revisit the all-time high (ATH) at $73,777.

The 30-day MVRV indicator hovers around 0 after dropping from nearly 8% a week ago. This suggests that investors have realized profits. However, it is unlikely that Bitcoin price correction will stop here, considering that the MVRV buy zone is between -8% to -10%. 

All in all, Bitcoin price prediction is that the correction is done for now and investors should watch for the aforementioned scenarios to play out.