Bitcoin (BTC) reached $34,000 at the Wall Street open on October 27 as investors shifted their focus to BTC’s performance against other macro assets. The largest cryptocurrency maintained its early-week gains, showing stability in the face of potential volatility leading up to the weekly and monthly closes.
Popular trader Daan Crypto Trades predicted that Bitcoin would likely remain in the $33,000 to $35,000 range for the time being. He mentioned the possibility of quick trades if the price swept any of these levels. Despite this prediction, he also noted that open interest (OI) had recovered to levels last seen before the sudden uptick that propelled Bitcoin to 17-month highs. Open interest highs have previously been associated with BTC price “squeezes.”
Material Indicators, an on-chain monitoring resource, identified a downside signal on one of its proprietary trading instruments. However, with two signals in place, the bearish implication would only be invalidated if Bitcoin reached $38,850. The commentary acknowledged the possibility of reaching this level before the monthly candle close.
More optimistic perspectives emerged from macroeconomic comparisons. Social media trader Kaleo highlighted that Bitcoin had significantly outperformed the S&P 500 since September, suggesting continued upside potential for BTC’s price. He noted that while Bitcoin had only increased by 36% compared to the USD since September lows, it had risen by 48% against the SPX index.
A chart accompanying Kaleo’s analysis displayed BTC/USD versus the S&P 500, with key events in Bitcoin’s history marked. Based on this, Kaleo argued that there was still “plenty of fuel” for Bitcoin to make a move higher to $40,000.
Other analysts emphasized the significance of recent resistance levels potentially becoming weekly and monthly support levels. Matthew Hyland, a crypto and macro analyst, pointed out the importance of breaking through the $32,000 level and stated that bears had few options left. He concluded that the last hope for bears was for Bitcoin’s weekly and monthly closes to remain below certain thresholds.
It’s important to note that this article does not provide investment advice or recommendations. All investment and trading decisions involve risks, and readers should conduct their own research before making any decisions.