Bitcoin Stumbles at $28,000 Threshold; Analysts Anticipate Volatility Ahead
Summary:
Bitcoin experienced a fallback at $28,000 with the Oct. 5 Wall Street opening, as an attempt to regain previous high levels faced troubles just above the $28,000 mark. Experts from Material Indicators and MN Trading anticipate potential volatility and recommend strategic trades based on key market indicators. Meanwhile, trader Ali recommends relying on the relative strength index (RSI) for investment decisions.
Bitcoin's value experienced a setback at $28,000 coinciding with the Oct. 5 Wall Street opening, failing to reach the six-week high again. Data collected from Cointelegraph Markets Pro and TradingView demonstrates the cryptocurrency's struggle as traders tried to resurrect its value to the level it was a week ago. This attempt faced issues just above the $28,000 threshold, leading to a market drop of up to $700, or 2.5%, within an hour.
Blockchain analysis firm, Material Indicators, was not taken aback by this scenario. It had previously warned of a potential drop, adding that such incidents could continue to occur. Pursuant to an X post, it added, "An impending rejection was signaled by both TA and Trend Precognition. But there could be yet another attempt."
Keith Alan, co-founder of Material Indicators, anticipated a probable fluctuation range for the BTC/USD pair, emphasizing the significance of the current price spot as a pivotal point of support/resistance in previous market surges. He notified X members of the high risk and potential for traders' false moves if a price surge occurs this month, with key MAs serving as substantial technical support and resistance.
At press time, the 200-week and 21-week MAs stood at $27,970 and $27,868, respectfully. However, Michaël van de Poppe, founder and CEO of MN Trading, expects Bitcoin to break through the significant $30,000 resistance. He wrote, holding above $27,200 is crucial for upward momentum, but a reassessment at $26,700-$26,900 could be beneficial before moving towards $30,000.
Popular trader and commentator, Ali, showcased a Bitcoin price trading strategy rooted in relative strength index (RSI), which he claimed accurately marked recent highs and lows. The RSI currently stands at 51, suggesting a moment of patience and advising to hold off purchases until the RSI falls below 30.35. Ali highlighted a typical "sell" signal emitting at the beginning of October, indicating a potential "buy" signal correlating with Bitcoin's price low.
Published At
10/5/2023 4:14:36 PM
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