Bitcoin (BTC) remained stuck at $27,500 at the Wall Street open on October 4, as attention continued to focus on rampant US yields.
Analysis: $27,000 is now a “key” for BTC price
Data from Cointelegraph Markets Pro and TradingView It showed a quiet day for BTC price action while USD volatility reigned supreme.
After the frenetic trading bout that started the week, Bitcoin was once again searching for a trend, with market watchers identifying key price points.
Popular trader Skew noted that buyers in the market are selling at $27,600, making it “important to recover this price level.”
“Get that recovery and a decent pop will come,” he predicted in a segment of today’s X analysis.
Buyers are selling for $27.6K
It adds importance to the recovery of this price level
Get that payback and a decent pop will come
Note that Coinbase CVD (actual buyer drove the price to $27.6K) pic.twitter.com/Jr6MDb7ru1
– Δ skew (@52kskew) October 4, 2023
Fellow Crypto trader Tony also highlighted $27,000 as a line in the sand on the downside.
Keeping this low at $27,000, so I will remain long for now and will sell if we miss this bottom here, or get pumped and rejected hard as suggested on the chart below pic.twitter.com/bSDjWWaJEU
– Crypto Tony (@CryptoTony__) October 4, 2023
Meanwhile, trader Mark Cullen updated his trading strategy, focusing on holding $27,000 as support.
“Bitcoin gets a reaction from its first attempt in my area and a click on the breakout trend line,” an accompanying comment said advertiser.
“Market conditions on Tradfi are not good, so the pressure is down. Let’s see if Bitcoin can hold this area longer, until other markets stabilize. Holding 27K is the key to $BTC!”
Bitcoin is biding its time as the dollar sees a sharp rebound
As Cullen and others have pointed out, the mood in the old markets was decidedly less stable than Bitcoin was back in the day.
Related: Bitcoin Analysts Still Expect BTC Price to Collapse to $20K
This came thanks to a rise in US 30-year bond yields to their highest levels in 16 years – something that has commentators worried about a possible collapse.
Skew suggested that this concern about how macro forces influence the situation was responsible for Bitcoin’s lack of significant trading volume.
“There’s not much besides dipping toes in the water type other than that, it’s mostly buying the culprits,” another X posted advertiser previously.
“The market is likely trying to digest everything that is going on in terms of risk and exposure parameters. Many are giving up on cashing out as the market is distressed.
The strength of the US dollar created its own disruption ahead of the Wall Street open, with the US Dollar Index (DXY) falling rapidly from levels not seen since the fourth quarter of last year.
As usual lately, the BTC/USD pair continues to shake off DXY surprise moves.
Commenting on the situation, Sven Henrich, founder of NorthmanTrader, showed that the long-term performance of the DXY chart was behaving as expected.
“Amidst all the chaos and volatility, there is an amazingly clean and consistent chart: the US dollar respecting the channel trend lines.” Tell X subscribers.
“Negative divergence at the recent highs at the top of the channel. What happens with this will likely be one of the main drivers of the market for the rest of the year.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.