Bitcoin due to new local low? Check out these BTC price levels when you reject $28K
Bitcoin (BTC) rejected $28,000 after the October 5 Wall Street open as it failed to return to six-week highs.
Bitcoin sees a quick drop after a new test of $28,000
Data from Cointelegraph Markets Pro and TradingView followed BTC's price action as bulls attempted to match levels from earlier in the week.
It had problems above the $28,000 mark, but the subsequent hourly candle sent the market down to $700, or 2.5%.
When commenting on the current situation, the indicators of the monitored utility material on the chain were not surprised. The proprietary trading instruments warned of a new collapse, and the chain of events could yet be repeated.
“If you don't see this rejection coming, you may want to review your device as both TA and Trend Precognition indicate the possibility of rejection,” the X post body explained.
“That doesn't mean we won't see another attempt, because we probably will.”
Next, Material Indicators founder Keith Allan looked at possible future trades for BTC/USD, noting that the current price zone has been a “key” support/resistance area in previous bull markets.
“So far, key moving averages are serving as strong technical resistance (and support). There is an opportunity to break this range higher this month. If that happens, a lot of people are going to find a rect on the street,” he told X Subscribers.
“A close above the 200-week MA ignites high opium. BTC below the 21-week MA will keep it at $25k to $28k until something breaks.
At the time of writing, the 200-week and 21-week MA are at $27,970 and $27,868, respectively.
Others, Michael van de Pop, founder and CEO of MN Trading, described Bitcoin as “very poised” to break through $30,000 resistance.
A day ago on X Analysis he wrote “Here are a few important steps for Bitcoin”.
“Holding above $27,200 would be useful for further upside, but a retest at $26,700-26,900 would be preferable before continuing the rally towards $30,000. The mood changed quickly. “
Trader lowers RSI for BTC price.
Elsewhere, popular trader and X analyst Ali revealed a BTC price trading pattern that he argued tracked recent local tops and bottoms.
Related: Bitcoin still beating US dollar with ‘eggflation' – Fed data
This revolves around the Relative Strength Index (RSI), which has fluctuated between roughly 30 and 75 on four-hour time frames since late August.
“Currently, RSI is stuck at 51. Patience is key! We may be better off waiting for RSI to fall below 30.35 to buy a dip!” the accompanying commentary advised.
Ali uploaded a chart showing a familiar “Sell” signal from early October, which could be followed by a new “Buy” signal – along with local lows in the price of BTC.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
