When Wall Street opened on October 2, Bitcoin (BTC) had a price target of $28,500, continuing its bullish start to the month.
Analysts wary of Bitcoin ‘upside wick’ fakes
Data comes from Cointelegraph Markets Pro and trading view Showing that BTC price action remains strong during the first U.S. trading day of October.
The largest cryptocurrency posted rapid gains at the weekly close, following a relatively cool finish to the monthly candle, with BTC/USD closing at $26,970.
For popular trader and analyst Rekt Capital, the monthly close warrants caution despite currently being more than 5% below spot prices.
“Bitcoin September monthly candle closes below $27,100 (black),” he wrote Part of the day’s X analysis along with an explanatory chart.
“Technically, black has become September resistance.”
Rekt Capital acknowledged October’s breakout and said “the bearish dilemma will become invalid” if it continues.
“But with BTC’s monthly close below black, there’s always the possibility that this price action could end up being an upward wick,” he continued.
“Bitcoin long ago offered an uptrend of up to +8%. Currently, BTC is up 4.5% this month. So, anything as high as $29,400 (+8%) is technically possible on the upside. Candlestick ends.”
Closer to home, market watchers noted continued encouraging signals from exchange order books.
“Spot bidding is still going on, but funding is negative. This is unbelievable,” popular trader Jeller therefore advised.
Fellow trader Skew noted that spot markets drove the move after Wall Street opened, showing an “interesting disconnect” from derivatives.
Bitcoin USD
Still scene driven and to be honest the criminals haven’t done much yet pic.twitter.com/xqauLr2vY6— Skew Δ (@52kskew) October 2, 2023
Bitcoin shrugs off fresh dollar surge
Meanwhile, the US dollar is equally eager to set new local highs on the day.
Related: BTC Price ‘Uptober’ Up 5% – 5 Things to Know About Bitcoin This Week
The U.S. dollar index (DXY) rebounded sharply from losses late last week after Congress averted a government shutdown.
As of this writing, the U.S. Dollar Index hit 106.7 points, just 0.2 points off the recent high in 2023.
For cryptocurrency analyst Nebraska Gooner, a breakout from here would open the door to 108, an 11-month high.
continues to this day.
A break above this local resistance towards $108 pic.twitter.com/2pVnfuWbGZ
— Nebraska (@Nebraskangooner) October 2, 2023
Coupled with rising bond yields and oil prices, economist Mohamed El-Erian describe A stronger U.S. dollar index is “something that neither the U.S. economy (especially growth and financial stability) nor the market can enjoy.”
Despite this, Bitcoin remains unaffected.
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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