Bitcoin (BTC) was rejected after Wall Street’s Oct. 5 open at $28,000 as a return to six-week highs failed.
BTC/USD 1-hour chart. Source: TradingView
After retesting $28,000, Bitcoin is witnessing a rapid decline
Data from Cointelegraph Markets Pro and TradingView tracked BTC price action as bulls attempted to reach levels seen earlier in the week.
However, this ran into problems just above the $28,000 level and the subsequent hourly candle saw the market fall to $700 or 2.5%.
When on-chain monitoring resource Material Indicators commented on the status quo, it was not surprising. Its proprietary trading tools had warned of a new downturn, it said, and the chain of events could yet repeat itself.
“If you didn’t expect this rejection, you may want to evaluate your tools, as both TA and Trend Precognition indicated a high probability of rejection,” one X post said.
“That doesn’t mean we won’t see another attempt, because we probably will.”
Material Indicators co-founder Keith Alan continued to look ahead to a possible trading range for BTC/USD in the future, noting that the current spot price zone has seen “important” support/resistance reversals in previous bull markets.
“So far, the key moving averages are serving as strong technical resistance (and support). There is a possibility of breaking this range to the upside this month. If it happens, there will be a lot of people reacting along the way,” he told X subscribers.
“A close above the 200-week moving average would fuel bullish hopes. A close below the 21-week MA will keep BTC between $25,000 and $28,000 until something breaks through.”
Annotated BTC/USD chart. Source: Keith Alan/X
At the time of writing, the 200-week and 21-week MA stood at $27,970 and $27,868, respectively.
Others were more optimistic: Michaël van de Poppe, founder and CEO of trading firm MN Trading, described Bitcoin as “very ready” to overcome the $30,000 resistance.
“There are few levels of significance for Bitcoin here,” he wrote in X Analysis the day before.
“Staying above $27,200 would be essential for a continuation of the uptrend, but preferred is a retest at $26,700-$26,900 before continuing the rally to $30,000. The mood changed pretty quickly.”
Annotated BTC/USD chart. Source: Michael van de Poppe/X
Trader tips RSI for BTC price bottom
Elsewhere, popular trader and X-commentator Ali revealed a BTC price trading method that he said tracks recent local highs and lows.
Related: Bitcoin still beating US dollar against ‘eggflation’ – Fed data
This was about the relative strength index (RSI), which has fluctuated between around 30 and 75 in four-hour periods since the end of August.
“Currently the RSI is at 51. Patience is key! “Perhaps our best bet is to wait for the RSI to break below 30.35 to buy the dip!” recommends part of the accompanying commentary.
Ali uploaded a chart showing a classic “sell” signal coming in early October, suggesting that a new “buy” signal could come next – alongside a local BTC price low.
BTC/USD chart with 4-hour RSI data. Source: Ali/X
This article does not contain any investment advice or recommendations. Every investment and trading activity involves risks and readers should conduct their own research when making their decision.
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