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Bitcoin (BTC) has once again captured the attention of traders and crypto enthusiasts as it keeps up the pressure on the $28,000 level. This crucial milestone comes at a time when geopolitical uncertainties are creeping into the minds of investors, adding an extra layer of intrigue to the cryptocurrency’s journey. In this blog post, we delve into the recent events surrounding Bitcoin, the resistance at $28,000, and the potential impact of a “big” buyer on the market.

Bitcoin’s Resilience Amidst Volatility

As we approach the weekly close of October 8, Bitcoin’s performance has been nothing short of impressive. Despite market turbulence, the cryptocurrency managed to recover swiftly from a sudden retest of the $27,000 level on October 6. The unexpected boost came from the surprising United States employment data, which defied expectations stemming from the Federal Reserve’s policy adjustments.

The $28,000 Resistance: Center of Attention

With the weekend drawing to a close, all eyes turned to the $28,000 resistance level. Market participants eagerly awaited a breakthrough or a significant shift in dynamics, recognizing that this level was a critical point of interest.

In-depth analysis of exchange order books on lower timeframes (LTF) revealed a pressing need for substantial buying power to transform the $28,000 resistance into solid support. Skew, a respected trader, pointed out that cracking this crucial zone would likely require the intervention of a “big spot buyer.” He emphasized this need, stating, “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.”

Bitcoin’s Reaction: Less Than Ideal

Despite Bitcoin’s overall resilience, its response to the $28,000 resistance and the 200-day moving average (currently hovering around $28,040) was described as “not the best kind” by Skew. This added to the uncertainty surrounding the digital asset’s short-term trajectory.

Another seasoned trader, Daan Crypto Trades, cautioned against shorting Bitcoin if a sudden breakout above the $28,000 level were to occur. His reasoning was sound, citing the presence of the Daily/Weekly 200MA in this vicinity. According to him, previous patterns have shown that weekend breakouts at such levels tend to have limited retracements.

CME Bitcoin Futures: The Price “Magnet”

An accompanying chart depicting the closing price of last week’s CME Bitcoin futures markets suggested that it could act as a significant price “magnet” in the coming week. Daan Crypto Trades also noted that trading around the CME price was most effective during ranging and choppy market conditions, hinting at a possible shift in dynamics if a strong breakout were to occur.

Geopolitical Uncertainty as a Potential Catalyst

In the midst of these intriguing price speculations, geopolitical instability emerged as a potential catalyst for Bitcoin’s next move. Analysts, including Michaël van de Poppe, founder and CEO of trading firm MN Trading, pointed to growing worldwide uncertainty as a driving force behind Bitcoin’s potential ascent. Van de Poppe had previously forecasted Bitcoin surging beyond the $30,000 mark in October, traditionally one of Bitcoin’s strongest months.

Conclusion: Awaiting the Next Major Development

As Bitcoin hovers just below the $28,000 level, marking a 3.5% month-to-date increase, the crypto market is on the edge of its seat. It eagerly anticipates the arrival of a significant player or a geopolitical event that could tip the scales in Bitcoin’s favor. The digital asset’s recent price action has generated significant interest, and as geopolitical tensions continue to simmer, market participants are poised for the next significant development in the cryptocurrency landscape.

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