Bitcoin enthusiasts are facing a wave of uncertainty following its worst ‘Uptober’ performance in nearly a decade. While October is historically a bullish month for Bitcoin (BTC), this year saw the cryptocurrency end with a nearly 4% loss, its worst since 2014. Now, TradingShot, a prominent cryptocurrency analyst and TradingView contributor, has warned of a potential price crash to $87,000, citing key technical indicators signaling a deeper correction.
Breaking Down the Warning
The analyst highlighted a fractal pattern that mirrors Bitcoin’s price movements between December 2024 and February 2025. This earlier period saw BTC rejecting a descending trendline, losing its higher-lows support, and ultimately dropping by approximately 32% from its all-time high. The current setup appears eerily similar, including the rejection at the 50-day moving average (MA), resistance on a descending trendline, and stagnation at the 0.5 Fibonacci retracement level.
“A symmetrical breakdown like the one in early 2025 could potentially push Bitcoin another 32% lower, aligning with the 2.0 Fibonacci extension and nearing the weekly 100-day moving average,” the analyst noted. This technical confluence places the $87,000 level as a critical demand zone, one that could attract buyers looking for market entry opportunities during the dip.
What’s Holding Back the Price?
Bitcoin has also struggled due to macroeconomic uncertainties. Concerns about a potential Federal Reserve rate cut in December—which appeared likely earlier this year—have now waned, causing hesitancy among investors. This unease persists despite recent positive developments in trade negotiations between the United States and China. At the time of writing, Bitcoin is trading at $107,632, down by nearly 3% in the past 24 hours and over 6.6% on a weekly timeframe.
Technical Indicators at a Glance
The technical analysis paints a mixed picture, with Bitcoin’s price sitting between its 50-day SMA ($114,139) and 200-day SMA ($105,876). While the latter acts as immediate support, the former represents an overhead resistance level that continues to cap price rallies. Additionally, the 14-day Relative Strength Index (RSI) at 47.79 indicates neutral momentum, suggesting ample room for the price to move without triggering overbought or oversold conditions.
What Does This Mean for Investors?
As Bitcoin remains in a precarious position, it’s essential for investors to exercise caution. For those looking to invest or trade Bitcoin, exploring platforms like eToro can offer opportunities with features like copying top-performing traders in real-time. Additionally, platforms like eToro provide access to over 3,000 assets, including stocks and precious metals, alongside cryptocurrencies.
However, as the value of Bitcoin may see significant volatility in the short term, investors must remember that cryptocurrency is a high-risk market. Always research thoroughly and consider your risk tolerance before making investments.
The Road Ahead
With Bitcoin’s price movement closely tied to both technical patterns and macroeconomic conditions, the coming weeks will be pivotal. Should the $87,000 level materialize, it could act as both a challenge and an opportunity for long-term investors waiting for lower entry points. In the meantime, monitoring the market’s response to major developments, such as Federal Reserve decisions and international trade agreements, will be key in predicting Bitcoin’s next move.
