Bitcoin (BTC) continued to put pressure on the $28,000 resistance level as geopolitical uncertainty entered the radar of traders during the weekly close on October 8th. Despite this pressure, BTC managed to avoid downside volatility over the weekend, recovering from a retest of $27,000 on October 6th. This recovery was attributed to surprise United States employment data that diverged from the Federal Reserve’s policy tweaks.
Now, as the new week began, the $28,000 resistance level became the main focus for market participants. In a low timeframe analysis of exchange order books, popular trader Skew noted that significant buying power would be required to flip $28,000 to support. He highlighted that the market was still trading $28K as resistance and that a big spot buyer would be needed to crack that area.
Bitcoin’s reaction to the $28,000 resistance level and the 200-day moving average (MA), which was currently at $28,040, was described as “not the best” by Skew. Another trader, Daan Crypto Trades, cautioned against going short on BTC in case of a sudden breakout. He noted that in the past, weekend breakouts at similar price levels tended to not retrace easily. An accompanying chart showed the closing price of last week’s CME Bitcoin futures markets, indicating a potential price “magnet” for the new week.
Some analysts, including Michaël van de Poppe, founder and CEO of trading firm MN Trading, viewed geopolitical instability as a potential catalyst for BTC price movements. Van de Poppe believed that Bitcoin could continue its upward grind and potentially reach $30,000 as worldwide uncertainty grows. He had previously forecasted a move beyond the $30,000 mark in October, which is traditionally Bitcoin’s strongest calendar month.
As of the time of writing, BTC/USD was trading just below $28,000, up 3.5% month-to-date. Despite these developments, it’s important to note that this article does not provide investment advice or recommendations. Every investment and trading move carries risks, and readers should conduct their own research before making any decisions.