Bitcoin Targets $28,500 Amid Bullish October Start; U.S. Dollar Also Rises
Summary:
Bitcoin (BTC) aims at a new high of $28,500 as October starts with a bullish trend. Despite potential resistance and external factors such as a surging U.S. dollar, Bitcoin remains unfazed. Notable traders indicate that spot markets, not derivatives, are driving this upswing. However, caution is still advised as investment and trading carry significant risks.
On October 2nd's Wall Street opening, Bitcoin (BTC) set its sights on reaching $28,500 as the new month started on a strong bullish note. Data from Cointelegraph Markets Pro and TradingView illustrated the robust BTC price trend, continuing into the initial United States trading round of October.
The premiere cryptocurrency quickly escalated as the week concluded, despite September's rather tranquil monthly candle completion, ending at $26,970 for BTC/USD. Rekt Capital, a well-known trader and analyst, cautioned investors to tread carefully, despite the monthly end being more than 5% beneath the current price.
According to Rekt Capital, Bitcoin ending September below approximately $27,100 (signified by the color black), solidified the new resistance level for that month. However, he acknowledged that an October breakout may nullify the pessimistic scenario, provided it persists.
Even though BTC finished the month beneath the black, there is still a possibility of this upward price action ending up as an upside wick, which could be as high as +8%. At present, BTC has increased by +4.5% this month. So technically, anything reaching to ~$29400 (+8%) could theoretically end as an upside wick.
Talking about current market conditions, observers reported positive signals on exchange order books. According to popular trader Jelle, "The constant spot bid, coupled with negative funding is indicative of disbelief." While Skew, another trader pointed out that the spot markets were propelling the shift post Wall Street opening, indicating an intriguing disconnection with derivatives.
Simultaneously, the U.S. dollar was equally determined to reach fresh local peaks on the day. After Congress succeeded in avoiding a government shutdown, the U.S. dollar index (DXY) witnessed a robust rebound from the previous week's losses. At the moment, DXY is hovering around 106.7, merely 0.2 points away from its recent 2023 highs. If DXY manages to break through this point, it has potential to reach 108 - marking new 11-month highs, per Nebraskan Gooner, a crypto analyst.
Economist Mohamed El-Erian asserted that the DXY strength, along with higher bond yields and oil prices, did not bode well for the US economy and markets. Despite these concerns Bitcoin continues to be unperturbed.
Remember, investment and trading entail serious risks, and individuals should undertake detailed research before making financial decisions. This article doesn't offer any investment advice or suggestions.
Published At
10/2/2023 2:00:02 PM
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