Bitcoin (BTC) reached a significant milestone on October 20th as it tapped $30,000 just before the Wall Street open, drawing the attention of analysts who were closely monitoring the weekly close. The price of BTC reached new two-month highs of $30,233 on Bitstamp, indicating its continued strength during the Asia trading session. However, there was a slight comedown at the time of writing, with the spot price dropping back below $29,500.
Given the ongoing volatility in the market, experts and market participants stressed the importance of the weekly candle close to determine the sustainability of the rally. Keith Alan, the co-founder of monitoring resource Material Indicators, emphasized the significance of the 100-week moving average (MA) at $28,627. He stated that a weekly candle close above this MA would confirm a bullish breakout, but cautioned against relying solely on this indicator, considering the potential for squeezes and fake outs. Alan also highlighted that BTC would need to break prior resistance levels at $30.5k, $31.5k, and ultimately $33k to further validate the bull breakout.
Another well-known trader, Pentoshi, identified $28,900 as a crucial support level that bulls needed to defend. He argued that maintaining the price above this level would be essential for sustaining the upward momentum.
Meanwhile, fellow trader Skew focused on low-timeframe market conditions and suggested that a sweep of late long positions could present an entry opportunity before the resumption of upside movement. Skew highlighted the growing interest of traders around the $30,000 level and emphasized the possibility of a breakout if the trend on the lower timeframe is broken.
Taking a more optimistic long-term view, the trading team Stockmoney Lizards predicted that the resistance just above $30,000 would soon be broken. They compared the current BTC/USD chart to its 2020 breakout, suggesting that now is the time for significant upward movement. The approval of the United States’ first Bitcoin spot price exchange-traded fund (ETF) was seen as a potential catalyst for further gains. Stockmoney Lizards believed that mass adoption and ETF approval would be the primary drivers of the Bitcoin market in the coming year, surpassing the impact of the halving event scheduled for April 2024.
In conclusion, Bitcoin’s price surpassed $30,000 on October 20th, generating excitement among analysts and traders who closely watched the weekly close to validate the sustainability of the rally. The significance of key support and resistance levels, as well as the potential impact of market events such as ETF approval and the upcoming halving, were discussed. However, as with any investment, readers are advised to conduct their own research and exercise caution before making any trading decisions.