- October 3, 2023
- Posted by: [email protected]
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Bitcoin (BTC), the world’s premier cryptocurrency, recently experienced a notable surge, breaching the $28,000 mark on Monday. This surge coincided with a $1.11 trillion valuation of the entire cryptocurrency market, reflecting a remarkable 3.05% surge within a mere 24 hours. What sparked this sudden ascent was an unexpected spike in demand for both Bitcoin and Ethereum, taking many by surprise.
In the span of just 15 minutes, these two leading cryptocurrencies witnessed a substantial 4% uptick in their values, prompting the rapid liquidation of short positions totaling more than $70 million in the crypto market. This electrifying event has ignited enthusiasm among crypto enthusiasts and investors, fostering hopes of a bullish trend throughout the month of October.
Notably, on October 1st, Bitcoin and Ethereum experienced a swift 4% surge within a quarter of an hour, infusing optimism into the crypto landscape for a prosperous October. However, this rapid ascent left short traders incurring losses exceeding $70 million, catching many traders off guard. Bitcoin’s price surged from approximately $27,100 to nearly $28,000, while Ethereum briefly touched $1,755 before settling at $1,727. This coincided with what enthusiasts often refer to as “Uptober,” a term denoting the historical trend of cryptocurrencies performing robustly in October.
Bitcoin’s recent price surge, breaching the $27,500 mark after a month of relatively steady prices, has positioned the cryptocurrency for an attempt to surpass $28,000. If this level can be sustained, it could potentially pave the way for Bitcoin to cross the $30,000 threshold, ushering in the anticipated “Uptober” performance.
An additional factor contributing to BTC’s price upswing is the recent Securities and Exchange Commission (SEC) approval granted to Valkyrie Funds to introduce Ethereum futures within their Bitcoin futures Exchange Traded Fund (ETF). This signals a growing interest in cryptocurrency futures. Additionally, the modest recovery of U.S. stocks and the decline in the 10-year Treasury yield from a 16-year high have played roles in shaping market sentiment.
Furthermore, the submission by VanEck for an Ethereum futures-based ETF has generated discussions about digital asset ETFs, instilling optimism in the crypto market. While Bitcoin’s recognition in Shanghai has added to the positive sentiment, the delay in the SEC’s decision regarding cryptocurrency ETFs has heightened anticipation across the crypto sphere.
From a technical standpoint, Bitcoin faces immediate resistance at $28,260, with additional resistance levels at $28,800 and $29,300. Conversely, support levels are found at $26,900, followed by $26,500 and $25,995.
Examining the technical indicators, the Relative Strength Index (RSI) has surged to 80, a level typically signifying overbought conditions. This suggests a potential pullback, necessitating caution among traders. The Moving Average Convergence Divergence (MACD) registers at 106, with a signal line at 202, while Bitcoin comfortably maintains its position above the 50-day Exponential Moving Average (50 EMA) at $26,910, a positive sign for its short-term trajectory.
Analyzing chart patterns, the appearance of the ‘Three White Soldiers’ pattern underscores robust buying sentiment, reinforcing the asset’s strong upward momentum.
In terms of fundamentals, recent ETF approvals and the overall bullish trend in the crypto market in October have exerted a positive influence on Bitcoin’s price. These pivotal developments have played a substantial role in propelling Bitcoin’s current bullish trajectory.
Bitcoin’s overall trend remains bullish. Investors may consider entry points above $27,500, targeting levels such as $28,800 or even $29,300. However, vigilance is essential: a failure to breach the $28,300 level could trigger a selling trend. In the short term, Bitcoin could challenge the $28,800 resistance and potentially aim for $29,300 in the days ahead, contingent on market dynamics and strength.
