Bitcoin (BTC) surged $34,000 at the open on Wall Street on October 27, as attention turned to BTC’s price performance relative to macro assets.
Bitcoin range faces weekly, monthly close
Data comes from Cointelegraph Markets Pro and trading view Bitcoin/USD appears to be holding steady, maintaining its early-week gains.
The largest cryptocurrencies have avoided major moves as the weekly and monthly close, a key moment in October’s uptrend, draws closer.
Popular trader Daan Crypto Trades said: “I think Bitcoin will hover in this range for a while.” Tell X subscribers in one of several posts of the day.
“My price range is around $33-35,000. Watch for a potential sweep of any of these levels for a quick trade.”
Nonetheless, Daan noted that open interest (OI) has returned to levels close to where they were before the sudden surge that pushed Bitcoin to a 17-month high. According to Cointelegraph, high open interest has become a feature of the BTC price “squeeze” in previous weeks.
#bitcoin Bybit’s open interest has almost returned to levels prior to this week’s massive short squeeze.
During that squeeze, we saw Bybit’s open interest drop by 21%, worth around $450 million pic.twitter.com/YbCM6XWZHW
— Daan Crypto Trades (@DaanCrypto) October 27, 2023
Elsewhere, on-chain monitoring resource Material Indicators flagged a downside signal for one of its proprietary trading tools.
Material Indicators said that with two such daily signals, only a move to $38,850 would “nullify” the bearish implications.
“That doesn’t mean we can’t get there before the monthly candle closes,” X’s comment read in part.
Trend forecasting continues to point us in the right direction.
To me, a breakout of $34,850 is invalid on the D chart. That doesn’t mean we can’t get there before the monthly candle closes.
If you want to get these #tradingsignals Subscribe when they work.
Get the tools. get… pic.twitter.com/bpOomEv5Tq
— Material Indicators (@MI_Algos) October 27, 2023
Analysis: ‘Plenty of fuel’ pushes Bitcoin price to $40,000
A more optimistic view comes from macroeconomic comparisons.
Related: Bitcoin Restarts 2023 Uptrend After Uptober BTC Price Rise 26% — Research
Kaleo, a popular social media trader, pointed out that Bitcoin has significantly outperformed the S&P 500 since September, so the likelihood of continued Bitcoin price growth remains high.
“Over the past month, we have finally seen the ‘bullish decoupling’ of BTC from equities that everyone has been waiting for,” he wrote in the comments of the day.
“While BTC/USD is only up 36% from September lows, BTC is up 48% vs. SPX.”
The accompanying chart shows BTC/USD versus the S&P500 and marks recent key events in Bitcoin’s history. Kaleo argued that “there is still enough fuel to push the price up to $40,000.”
Others focus on the importance of near-term resistance levels in the days following a move to weekly and monthly support levels.
“I don’t know how anyone could objectively look at this Bitcoin chart and conclude that breaking $32,000 is no big deal,” said cryptocurrency and macro analyst Matthew Hyland debate.
Hyland said bears have few options.
“Their last glimmer of hope is the weekly and monthly closing prices below,” he concluded.
This article does not contain investment advice or recommendations. Every investment and trading activity involves risks, and readers should do their own research when making decisions.
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