Bitcoin (BTC) maintained its pressure on the $28,000 resistance level as geopolitical uncertainty became a concern for traders. Over the weekend, BTC price performance avoided downside volatility, recovering from a retest of $27,000 on October 6. This recovery was thanks to surprising employment data in the United States that diverged from Federal Reserve policy adjustments. As the new week began, market participants focused on the $28,000 resistance as the main point of interest.
In a low timeframe analysis of exchange order books, popular trader Skew noted that significant buying power was still needed to turn $28,000 into support. Bitcoin was still trading the $28,000 level as resistance, and a big spot buyer would be required to break through that area, according to Skew. Additionally, the shorting of every low timeframe bounce into $28,000 was observed. Skew described Bitcoin’s reaction to both the $28,000 level and the 200-day moving average (MA) at $28,040 as unfavorable.
Fellow trader Daan Crypto Trades cautioned against going short on BTC if a sudden breakout occurred, as it could mark the start of further upside. Daan Crypto Trades stated that they were not keen on shorting any deviations above the significant $28,000 level, which also coincided with the Daily/Weekly 200MA. Historical data showed that weekend breakouts at such levels tend to have less retracement.
Looking at the CME Bitcoin futures markets, it was observed that the closing price of last week’s futures formed a price “magnet” for the new week. Trading around the CME price was best practiced during a ranging and choppy environment. However, a strong break above this region could indicate a change in the market environment. Therefore, caution was advised against shorting immediately in case of a weekend pump.
Amidst the events in Israel, some analysts highlighted geopolitical instability as a potential catalyst for BTC price movement. Michaël van de Poppe, founder and CEO of trading firm MN Trading, predicted a volatile week ahead, with Bitcoin potentially reaching $30,000 as global uncertainty grows. Van de Poppe had previously forecasted a move beyond the $30,000 mark in October, historically Bitcoin’s strongest calendar month.
At the time of writing, BTC/USD was up 3.5% month-to-date, trading just below $28,000. However, it is important to note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any investment decisions.
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