Bitcoin (BTC) experienced a dip below $34,000 after the Wall Street market opened on October 26. This drop came as the cryptocurrency continued to consolidate near its 17-month high. Despite attempting to push higher the day before, Bitcoin faced sell-side pressure, which prevented it from surpassing the $35,200 mark. Market data from Cointelegraph Markets Pro and TradingView showed that BTC was challenging intraday lows.
A market monitoring resource called Material Indicators highlighted the significance of the $33,000 price level. According to their analysis, if Bitcoin’s price falls below this level either before or after the monthly candle close, it would invalidate the attempt at a bull market breakout. Material Indicators also noted that the side with the heaviest concentration of liquidity closest to the active trading zone typically wins, and currently, both sides have similar concentrations, giving a slight advantage to the bid side.
There are several price targets of interest for Bitcoin among market participants. Some traders, like Michaël van de Poppe, founder of trading firm MNTrading, identified $34,700 as a resistance level that, if broken, could lead to a price range between $37,000 and $38,000. Similarly, Daan Crypto Trades mentioned that Bitcoin’s current price action seemed to be in chop mode until either $33,000 or $35,000 broke.
One theory that caught attention in the market was the possibility of Bitcoin returning to $20,000, which is the only nearby “gap” in the CME Group Bitcoin futures markets. These gaps occur when the Bitcoin to USD trading pair starts a new week at a different price from where it traded on the Friday prior. While some believe that the gap could act as a magnet for the market and bring down Bitcoin’s price, trader and analyst Credible Crypto dismissed this theory. He argued that gaps are often left unfilled during parabolic advances and that Bitcoin would likely leave that particular gap behind.
It is worth noting that this article does not provide investment advice or recommendations. Every investment and trading decision carries risks, and readers are urged to conduct their own research before making any decisions.