Bitcoin (BTC) faces the potential for a drop to $54,000 or lower as new geopolitical tensions impact BTC price strength.
Bitcoin traders are now setting sub-$60,000 price targets after BTC/USD experienced a more than 5% decline within 24 hours.
Market anxiety surrounding events in the Middle East has significantly affected the crypto market. Recent data from Cointelegraph Markets Pro and TradingView reveals that the total crypto market cap has fallen by 7.2% over the past two days.
Bitcoin reacted to the turmoil in typical fashion, approaching the $60,000 support level before reversing.
However, some traders believe that the worst is yet to come.
“Volume going up with price going down usually signifies a strong downtrend,” popular trader Roman warned in his latest analysis on X.
“More confluence for my idea that we will revisit the 55-57k area before a potential reversal. Regardless, I will be looking for long setups along the way.”
Such price levels have not been seen on BTC/USD in two weeks, but even lower targets are now under consideration.
Trader and analyst Toni Ghinea expressed concerns that Bitcoin may not only breach $60,000 but could also hit $54,000.
“I said $BTC will make the BULL TRAP above 58k,” he noted, predicting a “bearish” October ahead.
As previously reported by Cointelegraph, expectations had leaned toward significant gains this month, as October usually sees an average BTC price increase of 23%.
Others have warned that any further geopolitical unrest could intensify pressures on risk assets.
In their latest bulletin, trading firm QCP Capital pointed out that crypto had been “hit much harder” than oil and equities.
“We seem to have found some support at the 60k level, but further escalation could push us much lower, possibly to the 55k level,” they forecasted.
“Middle East geopolitics will steal the limelight for now, but the shallow sell-off suggests that the market remains well bid for risk assets. This minor setback shouldn’t distract from the bigger picture.”
Crypto trader, analyst, and entrepreneur Michaël van de Poppe also remains optimistic about the longer-term outlook.
In his recent X updates, he noted that the BTC price drop has reduced order book liquidity.
“I think we’re fairly close to the low, maybe have another sweep of the low at $60K and reverse from here,” he concluded.
