On October 20th, Bitcoin made a significant move, surging to $30,000 as Wall Street opened its doors. Analysts were closely monitoring the weekly closing price to gauge the strength of this rally.
BTC’s price reached a two-month high of $30,233 on Bitstamp, maintaining its strength during the Asian trading session.
However, as of the time of writing, it experienced a slight dip, dropping just below $29,500.
The ongoing volatility in the market had experts emphasizing the importance of a strong weekly candle close to confirm the sustainability of the rally.
One key metric being watched closely was the 100-week moving average (MA) at $28,627. Keith Alan, co-founder of Material Indicators, emphasized the significance of the weekly candle closing above this level, with subsequent candles staying above it without any downward wicks.
He noted that Bitcoin would need to overcome resistance levels at $30.5k, $31.5k, and ultimately $33k to validate a bull breakout.
Trader Pentoshi identified $28,900 as a critical support level that bulls needed to maintain. Meanwhile, another trader, Skew, suggested that a sweep of late long positions could create an entry opportunity before the upside resumed.
Taking a longer-term perspective, the trading team at Stockmoney Lizards remained optimistic, predicting that the resistance just above $30,000 would soon be breached.
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They pointed to a chart fractal comparing BTC/USD in 2023 to its 2020 breakout, suggesting that significant upward movement was imminent.
The approval of the United States’ first Bitcoin spot price exchange-traded fund (ETF) was seen as a potential catalyst for this surge.
In their commentary, Stockmoney Lizards addressed concerns about the timing relative to the 2020 halving event, stating that the current circumstances, including mass adoption and potential ETF approval, would be the driving forces behind Bitcoin’s price movement.
They also mentioned the upcoming block subsidy halving scheduled for April 2024, which could further impact the cryptocurrency landscape.
In conclusion, Bitcoin’s price surged to $30,000 on October 20th, with market participants closely monitoring the weekly candle close to confirm the strength of the rally.
Key support and resistance levels were identified, and traders remained optimistic about the cryptocurrency’s future, especially in the context of potential ETF approval and upcoming halving events.
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