The recent decline in Bitcoin (BTC) prices below the $60,000 mark has led to massive withdrawals from exchanges, as traders scramble to “buy the dip.” This sudden surge in buyer activity comes at a time when Bitcoin is under intense pressure from geopolitical uncertainties.
Bitcoin experiences massive exchange withdrawals amid price battle
On October 3rd, Bitcoin’s price fell below $60,000 during Wall Street’s opening session, with exchanges registering a significant influx of buyer interest.
Data from Cointelegraph Markets Pro and TradingView indicated that BTC/USD hit a low of $59,860 on Bitstamp, as the uncertainty surrounding geopolitical tensions in the Middle East continued to weigh heavily on the market.
Despite attempts to recover from early-week losses, Bitcoin struggled to regain momentum. The key $60,000 support level now serves as the battleground between further downside risks and a potential recovery.
As trader and analyst Toni Ghinea remarked in a recent X post, “Anyone bullish in October is on the WRONG SIDE.” Ghinea predicted that Bitcoin could reach $56,000 in the short term, with a possibility of hitting $54,000 or lower during this correction phase.
Traders see opportunity amid uncertainty
While some traders fear further drops, others remain optimistic about a potential reversal.
Popular trader CrypNuevo highlighted the psychological significance of the $60,000 level, stating that it’s common to see a slight dip below this mark to trigger stop-loss orders and high-level liquidations before a rebound occurs.
CrypNuevo warned that if BTC dips to $59,000, even briefly, retail investors might begin to panic, adding further volatility to the market.
On-chain data reveals a spike in buyer interest
Order book liquidity data from monitoring platform CoinGlass showed an increase in buy orders just below the $60,000 level. This was further confirmed by the on-chain analysis platform CryptoQuant, which reported the highest exchange withdrawal activity since the 2022 bear market.
In a blog post, CryptoOnchain, a CryptoQuant contributor, emphasized that the 30, 50, and 100-day moving averages all point to an uptick in Bitcoin outflows from exchanges, indicating a growing demand from buyers seeking to capitalize on the price drop.
Economic data hints at potential recovery
The release of U.S. unemployment claims data on the same day revealed a stable job market, boosting confidence in economic recovery. Some analysts believe that this stability could positively impact risk assets, including cryptocurrencies.
QCP Capital, a leading trading firm, noted in its latest newsletter that the correlation between U.S. equities and cryptocurrencies remains strong. The firm expects Bitcoin to follow suit as the stock market recovers.
Looking ahead, QCP Capital pointed to the upcoming non-farm payroll report as a critical factor that could further support the strength of the U.S. labor market. If job growth remains robust, it could bolster risk assets and potentially ignite a Bitcoin rally.
Bitcoin’s October outlook: A temporary dip before “Uptober”?
Despite the price dip triggered by geopolitical tensions in the Middle East, many analysts maintain a bullish outlook for Bitcoin throughout October. QCP Capital remains confident that Bitcoin will rebound, stating that “we expect this dip to be temporary and anticipate an ‘Uptober’ rally to prevail.”
The firm forecasts a return to upward momentum by the end of the month, as Bitcoin historically performs well in October.
Conclusion
Bitcoin’s drop below $60,000 has sparked significant buyer interest, marking the largest exchange withdrawal event since 2022. While some traders remain cautious about further downside risks, others see this as a buying opportunity ahead of a potential recovery.
With key economic data on the horizon and historical trends favoring Bitcoin in October, the market could be primed for a resurgence in the coming weeks.