Bitcoin (BTC) failed to return to six-week highs, falling to $28,000 after Wall Street opened on October 5.
Bitcoin drops rapidly after retesting $28,000
Data comes from Cointelegraph Markets Pro and trading view Bitcoin price action follows suit as bulls attempt to match levels seen earlier in the week.
However, problems were encountered above the $28,000 mark, with subsequent hourly candles taking the market down to $700, or 2.5%.
When commenting on the current situation, on-chain monitoring resource Material Indicators was not surprised. The company said its proprietary trading tools have warned of a new economic downturn and that the chain of events could still happen again.
“If you don’t see this rejection coming, then you may want to evaluate your tools, as both TA and trend forecasting indicate a high likelihood of rejection,” part of X’s post point out.
“That doesn’t mean we won’t see another attempt, because we probably will.”
Keith Alan, co-founder of Material Indicators, continues to pay attention to the possible future trading range of BTC/USD, and pointed out that the current spot price area was the “key” support/resistance flip point in the previous bull market.
“The key moving averages have been strong technical resistance (and support) so far. A breakout of that range is possible this month. If that happens, a lot of people will be affected,” he said Tell X Subscribers.
“A close above the 200-week moving average will fuel bullish optimism. A close below the 21-week moving average will keep BTC trading between $25,000 and $28,000 until a breakout occurs.”
As of this writing, the 200-week moving average and 21-week moving average are $27,970 and $27,868 respectively.
Others are more optimistic, said Michaël van de Poppe, founder and CEO of trading company MN Trading. describe Bitcoin is “ready” for resistance at $30,000.
“Bitcoin is not that important here,” he said wrote In the previous day’s X analysis.
“Staying above $27,200 is important to continue the rise, but it would be better to retest $26,700-$26,900 before we can continue the rally to $30,000. Sentiment changes quite quickly.”
Traders use RSI to determine BTC price bottom
Elsewhere, popular trader and X commentator Ali revealed a BTC price trading method that he believes tracks recent local tops and bottoms.
Related: Bitcoin still outperforms dollar against ‘egg inflation’ – Fed data
This revolves around the relative strength index (RSI), which has been trading between about 30 and 75 on the four-hour time frame since late August.
“The RSI is currently at 51. Patience is key! We’d better wait for the RSI to break below 30.35 and buy the dip!” Part of the accompanying commentary suggestion.
Alibaba uploaded a chart showing the classic “sell” signal that appeared in early October, which means that a new “buy” signal may appear next, and the BTC price will also reach a local low.
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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