- October 9, 2023
- Posted by: [email protected]
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Bitcoin is currently struggling to break through a significant resistance level at $28,000, and analysts believe that a substantial buyer may be required to overcome this obstacle. End-of-week analysis suggests that Bitcoin’s price may face challenges in surging beyond this key level, particularly as geopolitical uncertainty comes into play.
Over the weekend, data from various crypto analytics sources indicated that Bitcoin’s price managed to avoid significant downward volatility. The cryptocurrency had experienced a swift drop to $27,000 on October 6 but rebounded thanks to unexpected U.S. employment data, which diverged from the Federal Reserve’s policy adjustments.
As a result, the $28,000 level has become the focal point for traders as they enter the new week. In a low timeframe (LTF) analysis of exchange order books, a popular trader known as Skew emphasized that substantial buying power would be needed to turn $28,000 into a support level. Skew noted that “the market is still trading $28K as resistance” and suggested that “a big spot buyer” would be required to breach this area.
Skew also mentioned that perpetual futures contracts (perps) were shorting Bitcoin during every LTF bounce towards the $28,000 level, further emphasizing the resistance at this price point. Additionally, he described Bitcoin’s reaction to both the $28,000 level and the 200-day moving average, currently around $28,040, as less than ideal.
Another trader, Daan Crypto Trades, cautioned against shorting Bitcoin if a sudden breakout above $28,000 occurred. He pointed out that Bitcoin often experiences weekend breakouts at key levels like this, which tend to have less retracement compared to other moves.
The closing price of last week’s CME Bitcoin futures markets was also noted as a potential price “magnet” going into the new week. Trading around the CME price is considered advantageous during choppy market conditions. However, traders are wary of shorting immediately in case of a weekend pump.
Geopolitical instability in Israel and other global events were highlighted as potential catalysts for Bitcoin’s price movement in the coming week. Some analysts, including Michaël van de Poppe, founder and CEO of MN Trading, suggested that Bitcoin could continue its upward trend and potentially reach $30,000 amid increasing worldwide uncertainty. Van de Poppe had previously forecast a move beyond $30,000 in October, historically a strong month for Bitcoin.
According to CoinGlass data, Bitcoin was trading just around $28,000 at the time of writing, with a month-to-date gain of 3.5%. Traders and investors remain watchful for any developments that could break Bitcoin’s current resistance and set the stage for potential further gains.
