BTC Price Knocks On $28.5K Trader Bitcoin ‘Treason’
Bitcoin (BTC) is set to hit $28,500 on Wall Street on October 2, continuing the start of the month.
Analysts are wary of Bitcoin's “inverted wick” illusion
Data from Cointelegraph Markets Pro and TradingView showed that BTC price action remained strong through the first US trading session in October.
BTC/USD closed at $26,970 on the contrary, following a cool monthly candlestick finish, the biggest cryptocurrency made quick gains towards the weekly close.
For well-known trader and analyst Rect Capital, this monthly close – although it is now more than 5% of the spot price – calls for caution.
“Bitcoin performed a close below ~$27,100 (black) on the September monthly candle,” wrote a part of an analysis by DayX (formerly Twitter) with an explanatory chart.
“Technically, the black has solidified as resistance for September.”
Rect Capital admitted in October that if it persists, it will “undervalue the depression.”
“However, as BTC closes monthly below the black, there is always a chance that this price action could end up as an uptrend,” he continued.
“Bitcoin has offered wicks up to +8% not too long ago. Currently, BTC is up +4.5% this month. So technically, anything up to ~$29400 (+8%) would theoretically end as an upside wick.”
Closer to home, market watchers noted continued encouraging signs in the stock market.
“Spot bidding continues, funding is negative. And this creates infidelity,” suggested Jelle, a well-known businessman.
Fellow Skew noted that spot markets have been driving the move since the Wall Street open, showing an “interesting disconnect” with derivatives.
$BTC still driven, perps haven't done much yet pic.twitter.com/xqauLr2vY6
— Skew Δ (@52kskew) October 2, 2023
Bitcoin avoids the addition of new US dollars
It was the US dollar, meanwhile, that was eager to hit new domestic highs on the day.
Related: BTC Price Up 5% ‘Uptober' — 5 Things to Know in Bitcoin This Week
After Congress lifted the government shutdown, the US dollar index (DXY) rebounded sharply from losses seen at the end of last week.
At the time of writing, DXY is hovering around 106.7, just 0.2 points below the recent 2023 highs.
For crypto analyst Nebraskan Gooner, this split puts 108 in play – marking new 11-month highs.
$DXY
Continued so far.
Break this environmental resistance to fly to $108 pic.twitter.com/2pVnfuWbGZ
— Nebraskangooner (@Nebrasangooner) October 2, 2023
Along with higher bond yields and oil prices, economist Mohamed El-Erian described the DXI's strength as “the US economy (especially growth and financial stability) or markets are not happy.”
Bitcoin, however, remains largely unknown.
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.
