- October 8, 2023
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
Bitcoin might have difficulty breaking through a key resistance zone of its own accord, end-of-week analysis predicts.
Bitcoin (BTC) kept up renewed pressure on $28,000 into the Oct. 8 weekly close as geopolitical uncertainty entered traders’ radar.
Trader: Bitcoin behavior at resistance “not the best”
Data from Cointelegraph Markets Pro and TradingView showed BTC price performance avoiding downside volatility over the weekend.
The pair recovered from a snap retest of $27,000 on Oct. 6, thanks to surprise United States employment data which diverged from policy tweaks by the Federal Reserve.
Now, the $28,000 resistance formed the main point of interest for market participants going into the new week.
In low timeframe (LTF) analysis of exchange order books, popular trader Skew said that major bidding power was still required in order to flip $28,000 to support.
“So on LTF we can see clearly the market is still trading $28K as resistance. Going to require a big spot buyer to crack that area imo,” he told X (formerly Twitter) subscribers.
“Perps are shorting every LTF bounce into $28K as well.”
Skew further described Bitcoin’s reaction to both that level and the 200-day moving average (MA), currently at $28,040, as “not the best kind.”
Fellow trader Daan Crypto Trades meanwhile cautioned on going short BTC should a sudden breakout occur, as this might form the start of further upside.
“I will say that with BTC sitting around this big $28K level which has the Daily/Weekly 200MA sitting there, I am personally not very keen on shorting any deviations above,” part of an X post stated.
“In the past, we’ve often seen a weekend breakout at these kinda spots which tend to not retrace as easily as they otherwise would.”
An accompanying chart showed the closing price of last week’s CME Bitcoin futures markets, this apt to form a price “magnet” going into the new week.
“Trading around the CME price is best practiced during a ranging & choppy environment,” he added.
“We are still in such environment but that would likely change upon a strong break above this region. Hence me not being too eager to short immediately in case we’d see a weekend pump.”
Analyst renews $30,000 BTC price forecast
In the wake of events in Israel, others meanwhile flagged geopolitical instability as a potential BTC price catalyst to come.
Related: Bitcoin bull market awaits as US faces ‘bear steepener’ — Arthur Hayes
Among them was Michaël van de Poppe, founder and CEO of trading firm MN Trading.
“Now; market perspective it’s going to be a volatile week,” he wrote in part of X analysis.
“My idea is that Bitcoin continues the upwards grind & potentially reaches $30K as worldwide uncertainty grows.”
Van de Poppe had previously forecast a trip beyond the $30,000 mark in October, traditionally Bitcoin’s strongest calendar month.
At just under $28,000, BTC/USD was up 3.5% month-to-date at the time of writing, per data from monitoring resource CoinGlass.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
