The primary cryptocurrency flexed its muscles last week and seemed poised to reclaim $85,000. However, the bears stepped in again, and the price eventually fell below $80,000.
Popular analyst Ali Martinez suggested the pullback could intensify in the short term, but that could actually work in investors’ favor. Here’s why.
The Next Buying Opportunity?
According to Martinez, Bitcoin appears to have broken below a rising parallel channel on the 4-hour chart. He believes that as long as $82,000 holds as a resistance, the correction could deepen toward a two-month low of $72,500. Nonetheless, the analyst doesn’t seem concerned about the potential decline and views it as a buying opportunity.
Another factor that may point to further downside is the US midterm elections scheduled for November 3. Martinez recently noted that following the 2010, 2014, 2018, and 2022 votes, BTC fell by 72%, 65%, 52%, and 27%, respectively.
His post raised concerns among several X users, who wondered whether they should sell their positions. The analyst advised them to take some profits in late October and potentially jump back in at $73,000 after the midterm elections.
Crypto with Harris ₿ also expects an additional decline. He spotted the break below the psychological $80K zone, saying the chart has shown “clear weakness” since the $85K rejection.
The analyst then identified $79,200 as “the immediate support,” suggesting that losing it could result in a drop to the $75,000-$72,000 range and then possibly to a collapse to $62,000. After that bottom, though, he thinks the bulls would return and push the price above $90,000.
Starting Point for a Rally?
X user Sweep also weighed in, noting that the asset’s daily Relative Strength Index (RSI) has reached the same level it was at when the pump began in August.
“This is what happens during a bull run, and those waiting for $65K will never get an entry,” he added.
The recent whale activity supports the positive scenario. As CryptoPotato recently reported, 40 newly created wallets have withdrawn over $770 million worth of the asset between October 1 and October 23.
Prior to that, large investors holding between 10 and 10,000 BTC scooped up nearly 90,000 coins in just one month. This aggressive accumulation leaves fewer coins available on the open market and could positively impact the price if demand holds. It could also boost confidence among smaller players and encourage them to bring fresh capital into the ecosystem.
The post Bitcoin (BTC) Risks Dropping to $72,500, But That Could Be a Blessing in Disguise: Analyst appeared first on CryptoPotato.