Bitcoin Value Faces Volatility, Drops Below $34K Amid Key Resistance
Summary:
Bitcoin's value slipped below $34,000 amid Wall Street's opening on October 26, prolonging its consolidation at a 17-month peak. Both long and short positions are facing volatility, according to various analysts. The key resistance lies at $34.7K, any breakout beyond this threshold could raise the Bitcoin value to $37-38K. The firm, Material Indicators, noted $33,000 as a critical price point, with any fluctuation below potentially undermining a Bull Market advance.
As Wall Street opened on October 26, Bitcoin's value dropped below the $34,000 mark, furthering its ongoing consolidation at 17-month highs. Data culled from Cointelegraph Markets Pro and TradingView reveals that the leading cryptocurrency is experiencing lows in the midst of the day. Despite attempts to escalate its value the previous day, the sell-side pressure has held the $35,200 mark as an unbroken cap.
Market monitoring resource Material Indicators warned that more progress is needed to chart the future course. The firm highlighted the importance of close scrutiny of liquidity placement in the order book, noting that the heavier concentrations around the active trading area tend to dominate. The observer went on to identify $33,000 as the crucial price point, arguing that any fluctuation below this figure could undermine any potential Bull Market advance.
Material Indicators also envisaged a potential short squeeze to $36,000 or even $40,000, which could then be followed by a drop in Bitcoin's value. The company further advised cautiousness until a retest of $33,000.
Several other market observers have a similar viewpoint, including Michaël van de Poppe from the trading firm MNTrading. Van de Poppe underlined the importance of significant resistance at $34.7K, explaining that a breakout beyond this threshold could push the cryptocurrency value to $37-38K. He also noted that rapid corrections are common during upward trends.
Daan Crypto Trades, another prominent trader, described the current climate in the Bitcoin market as extremely volatile, saying that it's punishing both overly ambitious longs and shorts, resulting in an overall fluctuation.
Meanwhile, Credible Crypto, an analyst renowned for his bullish view on Bitcoin, dismissed the bearish theory suggesting a fall back to $20,000. This prediction stems from the existence of a "gap" in the CME Group's Bitcoin futures market. He expressed confidence that this gap would likely be left unfilled during parabolic rises.
This article is strictly informational and does not contain any investment advice or recommendations. All investments and trading moves entail risks, and readers are urged to do their own research before making any decisions.
Published At
10/26/2023 3:25:00 PM
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