Bitcoin Price Hits October Peak Nearly $20,000 as US Stocks Rebound

Traders claim that Bitcoin should have broken out, but are hesitant to be optimistic about a trend reversal.

Bitcoin (BTC) surged to fresh October highs at the open on Wall Street on Oct. 3, as concerns from Credit Suisse mounted.

Traders fall into a BTC range

Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair targeting $19,500 after starting the month flat.

The largest cryptocurrency reacted positively to lower-than-expected U.S. manufacturing data, while in Europe, market turmoil over Credit Suisse gathered pace despite executive reassurances.

“We are starting October trading in the same congested area that we ended September in,” wrote on-chain analytics resource Material Indicators in one of several updates for the day.

“The MA of 21 is behaving as a ceiling in the price of BTC, but it is expected to be retested soon. I need him to for any chance of getting back to 20 level.”

Material Indicators was referring to Bitcoin’s 21-day moving average (MA) around $19,400, which could now mark a resistance/support turn.

Another post revealed that a proprietary trading indicator was flashing “long” on the daily timeframes, raising hopes that the bulls would be able to tackle the $20,000 mark.

However, analyzing the behavior of derivatives traders, William Clemente, co-founder of digital asset trading and research firm Reflexivity Research, warned that long positions were too eager to confirm a trend reversal.

“It’s important to keep an eye on the BTC derivatives market. At the moment, longs have piled in on every upward price move,” he explained.

“This is not what we want to see for a complete trend reversal (similar to late July 2021). We want to see participants conditioned to ‘fade’ rallies.” Order book data from Binance, the largest exchange by volume, showed the BTC/USD pair trading in a tight range bounded by sellers at $19,500 and bid interest around $19,150.

Below this figure, support was found at $18,800 at the time of writing.

US stocks offset losses as dollar cools

Regarding the macroeconomic situation, US Purchasing Managers’ Index (PMI) data, which came in below expectations, put pressure on bond yields.

At the same time, oil and silver, in particular, gained, while in equity markets, the S&P 500 and the Nasdaq Composite Index rose 1.8% and 1.3%, respectively.

“More PMI data, unemployment and job openings are coming next week. The turn of the markets? It seems so,” replied Michaël van de Poppe, CEO and co-founder of trading company Eight, as part of the comments. From the market.

Van de Poppe further described Bitcoin’s current trading range as “ultra boring” as he expected the cryptocurrency to copy silver’s performance.

Reference: es.cointelegraph.com

Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.

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