Bitcoin (BTC) held steady at $27,500 when Wall Street opened on October 4, as attention continued to focus on soaring U.S. yields.
Analysis: $27,000 is now ‘key’ for BTC price
Data comes from Cointelegraph Markets Pro and trading view Bitcoin price action was calm, while US dollar volatility dominated.
After a busy series of trading to start the week, Bitcoin is once again seeking direction, with market watchers pointing to key price points.
Popular trader Skew pointed to market taker selling at $27,600, indicating that “recovery at this price level is very important.”
“Get recycled, decent pop will come,” he predicted in his X analysis of the day.
Bitcoin USD
The receiver is priced at $27,600Increased importance of price level recovery
Get recycled, decent pop will come
Note coinbase CVD (actual buyer-led price $27,600) pic.twitter.com/Jr6MDb7ru1
— Skew Δ (@52kskew) October 4, 2023
Fellow trader Crypto Tony also highlighted $27,000 as the bottom line for the downward trend.
Bitcoin USD / Dollar – renew
Holding the low of $27,000, so I’m staying long for now, if we break below this low here, I’ll go short, or as shown in the chart below, push hard and reject pic.twitter.com/bSDjWWaJEU
— CryptoTony (@CryptoTony__) October 4, 2023
Meanwhile, trader Mark Cullen updated his trading strategy, also emphasizing holding $27,000 as support.
“Bitcoin’s first attempt at moving into my zone and hitting a breakout trend line got the reaction,” a side comment point out.
“Tradfi’s market is in bad shape, so the pressure has dropped. Let’s see if Bitcoin can stay in this area longer until the rest of the market stabilizes. Holding 27k is the key to BTC!”
US dollar pulls back sharply, Bitcoin bids its time
As Cullen and others explained, sentiment in traditional markets was decidedly less stable than Bitcoin’s on the day.
Related: Bitcoin Analyst Still Predicts BTC Price to Plunge to $20,000
That’s thanks to a surge in U.S. 30-year bond yields to 16-year highs, keeping commentators wary of a potential collapse.
Skew believes this anxiety about how macro forces will play out is responsible for the lack of trading volume in Bitcoin.
Another X posted: “Not much more than a bid to test the waters, just that most people are buying.” point out Earlier.
“The market is probably trying to digest everything that’s going on in terms of risk parameters and exposure. A lot of people are surrendering to cash in a market downturn.”
A stronger U.S. dollar sparked upheaval ahead of the open on Wall Street, with the U.S. Dollar Index (DXY) quickly retreating from levels last seen in the fourth quarter of last year.
As has been the norm recently, BTC/USD continues to shrug off rapid moves in DXY.
Commenting on the situation, Sven Henrich, founder of NorthmanTrader, said that in the long term, the DXY chart performed as expected.
“Amid all the chaos and volatility, there is one chart that is surprisingly consistent and clear: the dollar follows a channel trendline,” he said Tell X Subscribers.
“There is negative divergence from the recent highs at the top of the channel. What happens as a result is likely to be one of the major market drivers for the rest of the year.”
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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