Despite the significant drop in the cryptocurrency market on Monday, analysts remain bullish for October
This Monday, the cryptocurrency market experienced a significant pullback, but several analysts still believe that the current decline represents a healthy adjustment and predict that October will usher in a new round of upward momentum.
Despite Bitcoin's drop from $116,000 to around $112,000 during the leveraged liquidation wave on Monday, with a daily decline of about 3.5%, market sentiment has not shifted to pessimism.
Analyst "Colin Talks Crypto" pointed out that Bitcoin's chart displays multiple nested technical patterns (such as head-and-shoulders and inverted head-and-shoulders combinations), which usually signal significant breakthroughs. He emphasized that the current market's worry sentiment contrasts with the euphoria at the bull market's peak, which is rather a positive signal, and maintains a year-end target expectation of $140,000.
Furthermore, historical data also supports this optimistic assessment, as October has often been the strongest month for cryptocurrency performance in the past decade, with an average return of 21.89%.
Although recent volatility risks have increased, the overall performance in September remains positive. Bitcoin has risen 3.5% this month, with a total market capitalization stabilizing at $3.96 trillion after experiencing $150 billion in liquidations.
Ethereum has seen a significant drop, falling over 4% to below $4,200, while altcoins have also generally experienced double-digit pullbacks due to higher leverage. However, analysts believe that if October achieves an average increase of 10%, altcoins may experience explosive trends.
Market observers remind investors to pay attention to changes in leverage and whether spot demand can recover. Meanwhile, although the liquidation scale this week is large, it has not yet disrupted the fundamental trend structure; if institutional funds continue to flow into ETFs, a pullback may become a buying opportunity.
In summary, based on the current technical patterns and historical seasonal trends analysis, the market is gradually building up momentum for a breakout. If the key support levels can be stabilized, October is expected to become a turning point for the start of a new round of market activity, laying the foundation for the performance in the fourth quarter.
