The expert noted that in 2020, a widespread collapse affected various assets, including stocks, gold, and Bitcoin. By 2021, Bitcoin was already in a downtrend. In contrast, today, while the Bitcoin price has faced challenges, stocks and gold are holding steady or even rising.\u00a0<\/p>\n
He believes that the recent struggles in the crypto market appear to stem from a unique credit event rather than a broader macroeconomic meltdown, as excessive leverage was wiped out in the process.<\/p>\n
Despite the recent volatility, VirtualBacon highlights that Bitcoin’s underlying structure remains healthy. The cryptocurrency recently touched the 20-week moving average and bounced back. Moreover, the 50-week simple moving average, which resides around $102,000, has yet to be breached, even amidst this latest drop.\u00a0<\/p>\n
According to VirtualBacon\u2019s analysis, until the Bitcoin price closes below the $100,000 mark, this downturn should be viewed as a correction within an ongoing bull market rather than a definitive top.<\/p>\n
Is The Bitcoin Price Poised For A Recovery?<\/h2>\n
Seasonality also plays a role in these trends: October typically sees chop, with altcoins lagging behind Bitcoin, while November and December are often characterized by altcoin rallies.\u00a0<\/p>\n
Despite the recent flush, VirtualBacon asserted that the market dynamics have not fundamentally changed; it may have even accelerated a reset in sentiment, clearing out leverage to return to cycle lows.\u00a0<\/p>\n
Meanwhile, macroeconomic factors are quietly turning bullish. Recent forecasts indicate that two rate cuts are now priced in at 96% for the upcoming Federal Open Market Committee (FOMC) meetings on October 28-29 and December 9-10.\u00a0<\/p>\n
VirtualBacon outlines a clear plan moving forward: Bitcoin is expected to consolidate between $110,000 and $125,000. A break above the $125,000 to $130,000 range could signal the start of a new altcoin season.<\/p>\n