Bitcoin Eyes $28,000 Amid Global Uncertainty; Traders Warn Against Immediate Short Selling
Summary:
Bitcoin (BTC) maintained pressure on the $28,000 mark as of October 8, amidst growing geopolitical uncertainties. Despite challenges, BTC avoided a significant drop over the weekend and recovered from a $27,000 retest due to unexpected U.S employment data. The key focus for market players is the $28,000 resistance as substantial buying force is required to turn this into a support level. Traders have recommended caution against short-selling BTC in anticipation of a sudden surge. The geopolitical instability, especially the situation in Israel, could potentially bring dynamic changes to Bitcoin's price.
On October 8, Bitcoin (BTC) was maintaining increasing pressure on the $28,000 mark as traders took notice of rising geopolitical tensions. This is according to the BTC/USD 1-hour chart from TradingView. Some have voiced concerns about Bitcoin's lack of strong advancement at this resistance level. Market data from Cointelegraph Markets Pro and TradingView reveal Bitcoin's ability to evade a sharp drop over the weekend, recovering from a quick dive back to $27,000 on October 6. This rise is attributed to unanticipated employment figures from the U.S, which defied Federal Reserve policy adjustments.
The key area of focus for market players as the new week starts is the $28,000 resistance. Skew, a renowned trader, during an analysis of exchange order books in low timeframe (LTF), pointed out that considerable buying force is needed to turn $28,000 into a support level. He noted that the market is still viewing $28,000 as a resistance level and that sizable immediate buying is necessary to clear this hurdle. He further mentioned traders are selling off every small jump towards $28,000.
Skew also commented on Bitcoin's lackluster response to the $28,000 mark and the 200-day moving average (MA), currently at $28,040, as being less than stellar. Concurrently, another trader, Daan Crypto Trades, advised against short selling BTC in the event of a sudden surge, as this could be the beginning of a more considerable upward trend.
The closing price of Bitcoin futures markets at the CME last week might serve as a magnetic price marker in the coming week. Daan Crypto Trades advises trading around the CME price during a volatile and uncertain environment, which we currently find ourselves in. He suggests that a strong breakthrough above the existing level would alter this tentative climate. As a result, he recommends caution before making immediate short sales in the event of a weekend price surge.
Amid the unfolding situation in Israel, some analysts are pointing out that geopolitical instability could potentially act as a dynamic catalyst for Bitcoin's price. One of these analysts is Michaël van de Poppe, the founder and CEO of MN Trading, who predicted a volatile week and stated that he expects Bitcoin to continue its upward march, potentially reaching $30,000 if global uncertainty increases. Van de Poppe had previously expected Bitcoin to exceed $30,000 in October, which is traditionally Bitcoin's strongest performing month.
At just under $28,000, Bitcoin's monthly gains stood at 3.5% when this report was written, data from CoinGlass shows. This news piece does not offer financial advice or recomendations. Investments and trading moves are always associated with risk, and readers are encouraged to conduct independent research before deciding.
Published At
10/8/2023 9:24:33 AM
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