The recent Bitcoin (BTC) price correction has sent ripples through the broader cryptocurrency market, pushing many assets into the red. On Tuesday, Bitcoin fell below $110,000, marking a 12% decline from its all-time high. Experts are now warning that the situation could worsen as October approaches.
Crypto Market’s Imminent Downturn
Market analyst OxPepesso took to the social media platform X (formerly Twitter) to explain his decision to liquidate all his crypto holdings by October. He identified key factors based on historical patterns that influenced his decision.
According to the analyst, many traders mistakenly believe that the upcoming altcoin season will last six to eight months. OxPepesso’s analysis indicates that altcoin season is anticipated to begin in late September to early October.
He notes that Bitcoin is losing its dominance, while the resurgence of memecoins and growing momentum in the Ethereum (ETH) ecosystem signal a shift in market dynamics.
Technical setups also appear to align with macroeconomic trends, suggesting that the market is nearing an “overheating phase.” He warns that following this peak, an “uncontrollable collapse” could occur, leading to significant losses for altcoins.
The analyst also highlights the use of various indicators, such as the Extreme Oscillators, which measure market overheating or oversold conditions. Currently, this indicator sits at 1-2, suggesting that the market has not yet reached an overheated state, but the risk of a downturn looms.
Another tool in OxPepesso’s analytical arsenal is the MVRV Bands, which assess the ratio of Bitcoin’s market value to its realized value. When this metric approaches its upper bands, it signals that the crypto market is becoming overheated, increasing the risk of a price drop.
Although today’s readings remain below critical levels, the analyst asserts that there are signs indicating the market is heading in that direction. This could potentially worsen the broader crypto market’s retracement as the October deadline approaches.
Analyst Predicts Lower Bitcoin Prices
The Pi Cycle Top indicator, which tracks the crossover of the 111-day and 350-day moving averages, is another focal point in OxPepesso’s analysis. Although the lines have not yet crossed, the chart below shows that the gap is closing rapidly, suggesting that a market top could be imminent.
Additionally, Onchain Originals Price Models are being monitored, as they reflect investor behavior and establish Bitcoin’s value ranges, identifying support and overheating levels that indicate the current phase of the crypto cycle.
In light of these indicators, OxPepesso notes that the current cycle is nearing its final phase. This sentiment is echoed by fellow market analyst Doctor Profit, who recently intensified his bearish stance.
Initially, he had projected that the market’s leading crypto could reach a new all-time high after hitting the $90,000 to $95,000 range. However, he now considers the possibility of lower price points, stating that he sees little to be bullish about.
Featured image from DALL-E, chart from TradingView.com