Bitcoin faced rejection at the $28,000 level after the Wall Street market opened on October 5th. This setback occurred as bulls attempted to push the price of Bitcoin back to its six-week high. However, the rejection resulted in an immediate decline in the market, with the price dropping by 2.5% or $700. Despite this, on-chain monitoring resource Material Indicators had predicted the downturn, stating that a rejection was highly probable. They also suggested that another attempt might occur in the future.
Keith Alan, co-founder of Material Indicators, discussed the potential trading range for BTC/USD. He noted that the current spot price zone had previously served as a key support/resistance area in previous bull markets. Alan believed that breaking out of this range and surpassing certain technical resistances could happen later in the month. However, he cautioned that if such a breakout occurred, it could cause significant losses for traders. Alan emphasized that a close above the 200-Week Moving Average (MA) would fuel bullish sentiment, while a close below the 21-Week MA would keep the price ranging between $25,000 and $28,000.
In contrast, Michaël van de Poppe, founder and CEO of trading firm MN Trading, expressed optimism about Bitcoin’s ability to overcome the $30,000 resistance level. He identified several important levels for Bitcoin, highlighting the significance of holding above $27,200 for upward continuation. He also suggested a retest at $26,700-26,900 before the rally toward $30,000. Van de Poppe noted that sentiment had quickly shifted in favor of Bitcoin.
Popular trader and commentator Ali presented a Bitcoin trading method based on the relative strength index (RSI). According to Ali, the RSI had fluctuated between 30 and 75 on four-hour timeframes since late August. Currently, the RSI stood at 51, and Ali advised waiting for it to drop below 30.35 before considering buying the dip. Ali’s chart showed a classic “sell” signal at the beginning of October, implying that a new “buy” signal could soon emerge, indicating a local low for Bitcoin’s price.
It is 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.