Bitcoin Faces Rejection at $28,000, Experiences Swift Downturn
Bitcoin (BTC) saw a swift downturn after testing the $28,000 mark on October 5. The subsequent hourly candle caused the market to drop by up to $700 or 2.5%. Material Indicators, an on-chain monitoring resource, had predicted this rejection and warned of a possible repeat.
Material Indicators co-founder Keith Alan stated that the current spot price zone for BTC/USD has been a significant support/resistance area in previous bull markets. He believes there is a possibility of breaking this range to the upside this month, which could lead to significant price movement.
Optimism Despite Rejection
Despite the rejection, some traders remain optimistic about Bitcoin’s future. Michaël van de Poppe, CEO of trading firm MN Trading, sees Bitcoin as being “very much ready” to tackle the $30,000 resistance level. He believes that holding above $27,200 would be crucial for continued upward momentum.
Using RSI as a Trading Indicator
A popular trader and commentator known as Ali has shared a trading method based on the relative strength index (RSI). According to Ali, the RSI on four-hour timeframes has been fluctuating between approximately 30 and 75 since late August. He suggests that waiting for the RSI to drop below 30.35 could be an opportune time to buy the dip and potentially identify a local low in BTC’s price.
Hot Take: Bitcoin Faces Resistance at $28,000 But Remains Optimistic
Bitcoin faced rejection at $28,000 after testing it on October 5th. However, some traders believe that Bitcoin is still well-positioned to overcome this resistance and potentially reach $30,000. Material Indicators warned of a possible downturn and highlighted the importance of the current spot price zone for BTC/USD. Despite the rejection, traders like Michaël van de Poppe remain optimistic about Bitcoin’s future. Additionally, Ali introduced an RSI-based trading method that could help identify potential buying opportunities. Overall, while Bitcoin faces resistance, there is still optimism in the market.
By
By
By
By
By
By