Bitcoin (BTC) tapped $30,000 into the Oct. 20 Wall Street open as analysts directed attention to the weekly close.BTC/USD 1-hour chart. Source: TradingView
BTC price sets up weekly close showdown
Data from cryptodirectories Markets Pro and TradingView captured new two-month BTC price highs of $30,233 on Bitstamp.
The pair showed continued strength during the Asia trading session, with a slight comedown taking place at the time of writing, taking the spot price back below $29,500.
With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power.
For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.
“This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” he wrote in part of an X post on the day.“Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”BTC/USD 1-week chart with 100MA. Source: TradingView
Eyeing required support zones, popular trader Pentoshi flagged $28,900 as the line in the sand for bulls to hold.
Would like to see shallow dips and now price maintain above 28.9-29.2k area https://t.co/12UUsbRRSq pic.twitter.com/Mq01tU4B7T— Pentoshi euroPeng (@Pentosh1) October 20, 2023
Tracking low-timeframe (LTF) market conditions, meanwhile, fellow trader Skew suggested that a sweep of late longs could result in an entry opportunity prior to upside resuming.
“I suspect longs are starting to fomo in here around $30K,” he told X subscribers alongside a chart of exchange order book data as $30,000 reappeared.“So if this LTF trend breaks a nice sweep could be a nice entry before higher wouldn’t be surprised to see something like this play out.”BTC/USD order book data. Source: Skew/X
Forecast expects “mass adoption,” Bitcoin ETF approval
In an optimistic longer-timeframe view, trading team Stockmoney Lizards predicted that resistance immediately above $30,000 would soon crack.
Related: Hodling hard: Bitcoin’s long-term investors own over 76% of all BTC for the first time
Updating a chart fractal comparing BTC/USD in 2023 to its 2020 breakout, analysts argued that the time for significant upside is now. An approval of the United States’ first Bitcoin spot price exchange-traded fund (ETF) would form the clinching factor.
“31/32k will break soon,” part of accompanying commentary read.“P.S.: Many of you will once more say: ‘But 2020 was after halving, here we are before’ — answer: doesn’t matter. This year mass adoption / ETF approval will be THE driver.”
Stockmoney Lizards referenced the upcoming block subsidy halving scheduled for April 2024.BTC/USD comparative chart. Source: Stockmoney Lizards/X
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.