- October 4, 2023
- Posted by: [email protected]
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Bitcoin traders witnessed a price drop of over 4%, causing a temporary setback from recent six-week highs. Despite the decline, Bitcoin remained within its familiar trading range, focusing on the critical level of $27,500.
Bitcoin’s price retracement occurred after it had climbed to approximately $28,600, only to reverse course and find support at around $27,335 before stabilizing. While this move might have sparked concerns of a potential “fakeout” at the beginning of October, market participants appeared relatively unfazed.
Some traders expressed optimism regarding the gradual nature of Bitcoin’s price movements. Jelle, a popular trader, pointed out that the absence of an immediate surge to $30,000 following the breakout was a positive sign. Vertical price increases often experience retracements, and a slower ascent could be more sustainable for the market. A similar sentiment was expressed by Daan Crypto Trades, who suggested that a “slow grind back up to the highs” would be the ideal scenario for Bitcoin bulls. However, they also noted the importance of remaining patient and waiting for favorable opportunities during the Asia session.
Examining the factors behind Bitcoin’s price reversal, trader Skew emphasized the selling pressure faced by spot traders. Spot takers attempted to push the price higher around $28,500 but encountered selling resistance, contributing to the subsequent sell-off. Although bid depth appeared to be recovering, overall liquidity remained relatively wide.
On-chain monitoring resource Material Indicators raised concerns about downside signals on its proprietary trading tools when analyzed on daily timeframes. These signals indicated a potential continuation of the downtrend. However, a return past the $26,800 mark could prompt a reconsideration of this outlook. The analysis highlighted the persistence of the trading range that Bitcoin had been locked in for months, emphasizing that it remained intact until a significant breakthrough occurred. The possibility of retesting resistance couldn’t be ruled out until Bitcoin printed a lower low on the weekly chart.
Previously, analyst Rekt Capital had suggested the potential for Bitcoin to surpass $29,000 before resuming its trading within the existing range. This indicated the ongoing uncertainty and fluctuation in the cryptocurrency market as traders closely monitored price movements and key support and resistance levels.
