Bitcoin (BTC) saw moderate gains on October 3rd but later gave back $1,300 before the daily close. The price action focused on $27,500, with a descent from the six-week high near $28,600. However, it managed to bounce back at $27,335 and stabilize at that level. Despite the risk of the October opening move being a “fakeout,” market participants remained calm.
Traders such as Jelle and Daan Crypto Trades expressed their opinions about the best scenario for Bitcoin bulls. Jelle stated that the lack of an immediate surge to $30k was actually a positive sign as vertical moves often retrace. Daan Crypto Trades emphasized the importance of a slow grind back up to the highs and suggested that longs should chill out and wait for spot bids to step back in.
Skew, a popular trader, analyzed the conditions surrounding the BTC price reversal and highlighted the selling pressure faced by spot traders. The attempt to push higher around $28.5k was met with selling, leading to the subsequent sell-off. Although the bid depth was showing some improvement, overall liquidity remained wide.
Earlier, Skew had pointed out the increased demands on buyers in order for the market to break out of its range. The same old range in which Bitcoin had been trading for months was still intact, and until there was a lower low on the weekly chart, retesting resistance couldn’t be ruled out.
Material Indicators, an on-chain monitoring resource, warned of downside signals on its proprietary trading tools on daily timeframes. It indicated a continuation of the downtrend, but a return past $26,800 may cause a reevaluation. The article concluded that until Bitcoin prints a lower low on the weekly chart, the possibility of retesting resistance should not be ruled out.
Rekt Capital, a popular trader and analyst, suggested that Bitcoin could go beyond $29,000 before continuing lower within its current range.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and analysis before making any investment decisions.
In conclusion, Bitcoin experienced some gains but ultimately retraced some of them. The market participants remained cautious, and traders gave their insights on the best scenarios for Bitcoin. The conditions surrounding the price reversal were analyzed, and the significance of the range in which Bitcoin had been trading for months was highlighted. On-chain indicators warned of downside signals, but until Bitcoin breaks the weekly chart’s lower low, resistance retesting cannot be ruled out.
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