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Bitcoin (BTC) tapped $30,000 into the Oct. 20 Wall Street open as analysts directed attention to the weekly close.
BTC price sets up weekly close showdown
Data from Cointelegraph Markets Pro and TradingView captured new two-month BTC price highs of $30,233 on Bitstamp.
The pair showed continued strength during the Asia trading session, with a slight comedown taking place at the time of writing, taking the spot price back below $29,500.
With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power.
For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.
“This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” he wrote in part of an X post on the day.
“Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”
Eyeing required support zones, popular trader Pentoshi flagged $28,900 as the line in the sand for bulls to hold.
$BTC update
Would like to see shallow dips and now price maintain above 28.9-29.2k area https://t.co/12UUsbRRSq pic.twitter.com/Mq01tU4B7T
— Pentoshi euroPeng (@Pentosh1) October 20, 2023
Tracking low-timeframe (LTF) market conditions, meanwhile, fellow trader Skew suggested that a sweep of late longs could result in an entry opportunity prior to upside resuming.
“I suspect longs are starting to fomo in here around $30K,” he told X subscribers alongside a chart of exchange order book data as $30,000 reappeared.
“So if this LTF trend breaks a nice sweep could be a nice entry before higher wouldn’t be surprised to see something like this play out.”
Forecast expects “mass adoption,” Bitcoin ETF approval
In an optimistic longer-timeframe view, trading team Stockmoney Lizards predicted that resistance immediately above $30,000 would soon crack.
Related: Hodling hard: Bitcoin’s long-term investors own over 76% of all BTC for the first time
Updating a chart fractal comparing BTC/USD in 2023 to its 2020 breakout, analysts argued that the time for significant upside is now. An approval of the United States’ first Bitcoin spot price exchange-traded fund (ETF) would form the clinching factor.
“31/32k will break soon,” part of accompanying commentary read.
“P.S.: Many of you will once more say: ‘But 2020 was after halving, here we are before’ — answer: doesn’t matter. This year mass adoption / ETF approval will be THE driver.”
Stockmoney Lizards referenced the upcoming block subsidy halving scheduled for April 2024.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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By: Cointelegraph By William Suberg
cointelegraph.com