Bitcoin Surges 4% to Reach $28,000
Bitcoin prices have experienced a significant surge of almost 4% during the Asian trading session on Monday morning, reaching a price of $28,000. This marks the highest price point for BTC since August 17. However, there is strong resistance at this level.
An analyst known as ‘CrediBULL Crypto’ stated that every higher timeframe impulse begins with a lower timeframe impulse. He predicted that BTC still has room to move higher, which was confirmed by the surge on Monday morning.
“The move we just saw is exactly what we were looking for. I know it’s a Sunday but if this move holds over the next couple of days the implications are SIGNIFICANT.”
“So, while we hold above the mid-range our next target is the range highs, with a first sign of weakness on a loss of the mid-range and clear invalidation right below that at the origin of this low timeframe impulse.”
We’re not done yet. $BTC pic.twitter.com/05ZnGkfSYV
— CrediBULL Crypto (@CredibleCrypto) October 1, 2023
Bitcoin Rally Driven by Spot Trading
Another analyst, Will Clemente, pointed out that BTC was currently trading at major technical indicators at the $28K level. Both the weekly and daily moving averages align with this price level. BTC reached a high of $28,141 during Asian trading and continues to remain above $28K.
BTC working on both its 200wma and 200dma at $28k pic.twitter.com/fbret90EuV
— Will Clemente (@WClementeIII) October 1, 2023
Spot Trading Drives the Bitcoin Rally
Greeks Live, a crypto derivatives outlet, noted that the current rally in Bitcoin was primarily driven by spot trading. They stated that with the current market liquidity, even a few thousand bitcoins being bought can support the entire market and push prices higher.
The rally also resulted in the liquidation of many short positions in derivatives markets.
Wtf just happened.
$400m $BTC shorts liq’d.
$200m $ETH shorts liq’d. pic.twitter.com/WbxRmy9kgu— Byzantine General (@ByzGeneral) October 1, 2023
Mixed Views on Bitcoin’s Future
However, not all analysts share the same bullish sentiment. Trader and analyst Alex Krüger predicted another crash, suggesting that the recent price pump indicates large holders cashing out before an impending crash.
“When you see the price of Bitcoin pumping like this, it means large holders are cashing out—ahead of the crash, which they all know is coming.”
Elsewhere in the Crypto Market
Ethereum has also experienced a 3.2% gain, reaching $1,726. This price level represents the highest point for ETH in the past month. Meanwhile, Solana (SOL) has seen the biggest surge among high-cap cryptocurrencies, with a staggering 13.6% increase to surpass $24. Over the past week, SOL has gained 24% as the Sam Bankman-Fried trial approaches on October 3.
The total market cap of the cryptocurrency market has risen by 3% to reach $1.15 trillion.
Hot Take: Bitcoin Breaks Resistance and Surges to New Highs
Bitcoin’s recent surge of almost 4%, breaking through heavy resistance at $28,000, signifies a significant move for the cryptocurrency. Analysts predict further upward momentum if BTC can hold above this level in the coming days. However, not all experts share this bullish sentiment and anticipate an impending crash as large holders potentially cash out their positions. Nevertheless, spot trading has been driving the rally, with even small purchases having a substantial impact on pushing prices higher. In other parts of the crypto market, Ethereum and Solana have also experienced notable gains.
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