Bitcoin (BTC) has targeted $28,500 at the Wall Street open on October 2 as the bullish start to the month continues.
Analyst warns of Bitcoin’s “inverted wick” counterfeit
Data from Cointelegraph Markets Pro and TradingView It showed that BTC price action remained strong in the first trading session in the US in October.
The largest cryptocurrency made quick gains at the weekly close, following the completion of a contrastingly impressive monthly candle that saw the BTC/USD price finish at $26,970.
For popular trader and analyst Rekt Capital, this monthly close – despite now being more than 5% below the spot price – calls for caution.
“Bitcoin had a September monthly candle close below $27,100 (black). books In part of today’s X analysis along with an explanatory chart.
“Technically, black has been strengthened as resistance for September.”
Rekt Capital acknowledged the October breakout, and that this would “negate the bearish impasse” if it persists.
“But given BTC’s monthly close below the black, there will always be a chance that this price action will end up as a bullish wick,” he continued.
“Bitcoin provided bullish wicks of up to +8% before long. Right now, BTC is up +4.5% this month. So technically, anything up to ~$29,400 (+8%) could… That theoretically ends as a bullish wick.
Closer to home, market watchers have noticed continuing encouraging signs on the exchange order books.
“The spot supply continues, while financing is negative. “This reeks of blasphemy,” famous trader Geely suggested as a result.
Fellow trader Skew noted that spot markets were leading the move after Wall Street opened, showing an “interesting disconnect” from derivatives.
– Δ skew (@52kskew) October 2, 2023
Bitcoin shrugs off new US dollar high
Meanwhile, the US dollar was keen to make new local highs during the day.
Related: BTC Price Hits ‘Uptober’ 5% – 5 Things to Know in Bitcoin This Week
After Congress avoided a government shutdown, the US Dollar Index (DXY) saw a sharp rebound from the losses seen late last week.
At the time of writing, the dollar index is hovering around 106.7, barely 0.2 points from its recent 2023 highs.
For cryptocurrency analyst Nebraskan Juner, a breakout from here would put 108 on the market – marking new 11-month highs.
Continuing so far.
-Nebrascanjuner (@nebrascanjunner) October 2, 2023
With bond yields and oil prices rising, economist Mohamed El-Erian says described The strength of the Dollar Index (DXY) is “neither enjoyed by the US economy (particularly growth and financial stability) nor by the markets.”
However, Bitcoin remained clearly unfazed.
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.
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