Bitcoin Faces Correction Amid Market Overbought Signs, Experts Optimistic About Q4 Prospects

COINOTAG news reports that Bitcoin saw a drop from above $65,000 to around $62,200 on September 30. The latest analysis from 10x Research attributes this decline to a typical bull market correction due to an overbought condition. Markus Thielen, founder of 10x Research, noted, “In our last week’s report, we highlighted that Bitcoin appeared overbought in the short term, as evidenced by the elevated greed and fear index. The current short-term reversal signal is bearish, suggesting a potential correction in upcoming days. ISM manufacturing new orders data indicates forward-looking indicators have plunged to nearly recessionary levels. Tomorrow’s data release could significantly impact Bitcoin’s price; a reading below 48.0 could instigate a further decline, whereas higher figures might drive an upward trend.” Nevertheless, Thielen remains optimistic about Q4, bolstered by expectations of a 50 basis point interest rate cut from the Federal Reserve and China’s recent large-scale stimulus measures. Market participants may gain further insights into the Fed’s direction later today when Chairman Powell speaks at the National Association for Business Economics’ annual meeting in Tennessee at 1 a.m. tomorrow. COINOTAG notes the release of the US September ISM Manufacturing PMI and August JOLTs job vacancies data at 22:00 Beijing time tomorrow.