Will Bitcoin (BTC) Price Drop To $12K in October? Decoding The Possibility

Top cryptocurrencies fail to pique traders’ interest, and the cryptocurrency market remains dominated by bears. The price of bitcoin (BTC) is lagging behind even the $20k mark, hovering in a range of around $19,500. In spite of the adverse macro and market environment, the price of Bitcoin is up nearly 2%.

Glassnode published “The Great Detox,” its weekly on-chain newsletter, last week. The Glassnode investigation evaluated a number of on-chain data that showed a generally negative prognosis for Bitcoin. As BTC returns to the $20k region, an analysis of short-term holders’ behavior reveals a decline in favorable circumstances.

With short-term holders making the most contribution, the study revealed a cluster of currency movements around the present price action of Bitcoin. In addition, Glassnode found a shortage of supplies between the $18k and $11k-12k zones.

Therefore, if Bitcoin drops below the lows of this cycle, these short-term holders risk going broke as a result of huge unrealized losses on their investments.

BTC Price to drop to $12k?

If there is a more extreme bearish environment, BTC could be hammered to the $12,000 level due to the unstable market behavior of these short-term holders. This is due to the fact that when volatility appears, short-term holders are the most prone to capitulate.

These short-term investors might give up their holdings in order to save what they can in the case of a worse macro environment and a minor BTC decline. This can cause the asset to decline even more, to a level of $12,000.

Nevertheless, a CryptoQuant analysis  in April compared the rate of decline from ATH then and predicted a bottom in the $20k region. After seeing a steady rate of decrease from the ATH last year, BTC was trading around the $40k mark at that time.