Bitcoin faced a rejection at the $28,000 mark after the Wall Street open on October 5, failing to reach its six-week highs. This rejection resulted in a swift comedown for the cryptocurrency, with a subsequent 2.5% drop in its price, equivalent to $700.
Data from Cointelegraph Markets Pro and TradingView showed that Bitcoin bulls attempted to match previous week levels but faced difficulties beyond the $28,000 mark. On-chain monitoring resource Material Indicators had predicted this downturn and stated that another attempt could still occur.
Keith Alan, co-founder of Material Indicators, mentioned that the current spot price zone for BTC/USD had served as significant support/resistance flips during prior bull markets. He suggested that breaking out of this range and surpassing key moving averages could lead to a bullish trend. However, a close below the 21-Week MA would maintain Bitcoin’s range between $25,000 and $28,000.
Despite this setback, some analysts remained optimistic about Bitcoin’s future. Michaël van de Poppe, founder and CEO of MN Trading, described Bitcoin as “very much ready” to tackle the $30,000 resistance level. He highlighted the importance of holding above $27,200 for upward continuation, with a preference for a retest at $26,700-26,900 before continuing the rally.
Another trader and commentator named Ali revealed a trading method based on the relative strength index (RSI) for Bitcoin’s price. He indicated that waiting for the RSI to drop below a certain level (30.35) could present an opportunity to buy the dip. Ali’s chart displayed a previous sell signal and suggested the potential for a new buy signal alongside a local low in Bitcoin’s price.
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.
