The leading cryptocurrency experienced enhanced volatility over the past week, eventually stabilizing at around $64,500 (per CoinGecko’s data).
Given the ongoing bear market, though, the price may soon head south again, but one popular analyst claimed that a dip to around $60K should actually be welcomed as good news.
Exactly What BTC Needs?
The renowned analyst Ali Martinez argued that a drop by nearly five grand would complete a classic inverse head-and-shoulders pattern that could set the stage for a serious pump. The setup consists of three dips – a low (left shoulder), a deeper plunge (head), and another low (right shoulder) and signals that sellers are running out of steam.
According to Martinez, the completion of the pattern combined with a confirmed breakout above $66,500 could open the door to a pump to a two-month high of around $74,000.
The analyst has been quite focused on BTC lately, revealing that whales have purchased roughly 29,000 units (worth more than $1.8 billion at current rates) over the past week. Accumulation from this cohort of investors is considered a bullish sign as it suggests that they are preparing for a potential upward move. Their actions could encourage smaller players to hop on the bandwagon, too, thus distributing fresh capital into the ecosystem.
Another comment from Martinez was his recent prediction about when BTC will reach its bottom. If the 4-year cycle theory holds, he expects that to happen between October 6 and October 16. This is a common thesis among analysts, as many believe the cryptocurrency could nosedive to multi-year lows before entering a new bull run. Others, like Joao Wedson, anticipate that the pivotal moment when bulls would finally regain control is the midterm elections in the US scheduled for early November.
An Additional Bullish Forecast
Vivek Sen – an X user with almost 300,000 followers – presented another optimistic scenario for BTC, based on the formation of a cup-and-handle breakout.
The pattern represents a big rounded dip (the cup), followed by a smaller pullback (the handle) and typically shows that the asset has built up strength and is perhaps gearing up for a rally. According to the analyst, this formation could be a precursor to a giant increase, setting $220,000 as the minimum target.
“Most people will only find out after it happens,” he added.
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