Bitcoin (BTC) reached $34,000 as attention shifted towards its performance against other macro assets on October 27th. The data from Cointelegraph Markets Pro and TradingView showed that BTC/USD was holding steady and maintaining its gains from earlier in the week. The largest cryptocurrency was able to avoid significant volatility as the weekly and monthly closes approached, which were crucial moments for the October uptrend.
Popular trader Daan Crypto Trades predicted that Bitcoin would remain in its current range for some time. He emphasized that the range to watch was between $33,000 and $35,000 and suggested keeping an eye on potential quick trades if any of these levels were swept. Despite this, Daan also noted that open interest (OI) had recovered to levels seen before the sudden uptick that brought Bitcoin to 17-month highs. Open interest highs had previously been indicators of BTC price squeezes.
On-chain monitoring resource Material Indicators flagged a downside signal on one of its proprietary trading instruments. It stated that only a move to $38,850 would invalidate the bearish implication, although this could happen before the monthly candle close.
Positive sentiments also emerged from macroeconomic comparisons. Social media trader Kaleo noted that Bitcoin had outperformed the S&P 500 significantly since September, indicating that there were good odds for continued BTC price upside. He emphasized that BTC was up 48% versus the S&P 500, while it was only up 36% against the USD from the September lows. An accompanying chart showed the comparison between BTC/USD and the S&P 500, with key events in Bitcoin’s history marked. Kaleo suggested that there was still plenty of fuel for BTC to move higher to $40,000.
Another analyst, Matthew Hyland, highlighted the significance of recent resistance levels potentially flipping to weekly and monthly support. He argued that breaking through $32,000 on the Bitcoin chart was a significant event that bears should not disregard. Hyland concluded that the last hope for bears was for the weekly and monthly closing to remain below the resistance level.
It’s important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.