Cryptocurrency Market Faces Steep Selloff Ahead of Expected “Uptober” Rally

The broader crypto market is experiencing significant downward pressure, despite previous anticipation of a bullish October. Bitcoin and altcoins saw sharp declines on Wednesday, testing key support levels. XRP faced the most severe drop at 11% after the SEC filed to appeal the recent court decision in its lawsuit against Ripple.

Bitcoin Correction Could Deepen Further

Bitcoin’s price has faced selling pressure over the past two days amid escalating Israel-Iran tensions. As news broke of Israel’s potential response to Iran’s attack, BTC plunged to $60,300 before rebounding above $61,000. Crypto analyst IncomeSharks commented:

“Many are trying to catch the falling knife on the first dip, expecting a quick rebound into ‘Uptober.’ It’s best to be patient. With $59k being discussed widely, we may need to clear out overcrowded bids and potentially see $57k.”

Some analysts predict an even steeper 15%+ correction from current levels. BTC is trading near the median support of its descending channel around $60,900. A break below could open the door to $52,000.

Analyst Crypto Capo suggested that if BTC falls to $52,000, Ethereum could drop to $1,800. He noted he would add to altcoin positions at those levels.

Altcoins Brace for Potential Selloff

Reports indicate that if Vice President Harris implements a 25% unrealized capital gains tax, it could trigger a major crypto market selloff. This may lead to even steeper declines for altcoins.

Ethereum has fallen 3.58% below $2,400. Other major altcoins like Solana, Dogecoin and Toncoin saw similar drops. XRP faced the largest decline following the SEC’s appeal, though Ripple is reportedly planning a cross-appeal.

Bucking the trend, SUI and Aptos have gained over 10% in 24 hours. With SUI Network TVL crossing $1 billion, the SUI price looks poised for new all-time highs.