Bitcoin achieved its initial weekly close above the $30,000 mark for the first time since summer, subsequently approaching levels nearer to significant long-term resistance. Among these levels is the 2023 high, which currently stands at $31,800. A renowned trader, Jelle, acknowledged this development, stating that “Bitcoin is back at key resistance for the third time in 6 months.”
But the analyst further added:
Time to be cautious, but I don’t think you want to be bearish here just because we’re reaching resistance. The level will eventually give in — and the move will be explosive. Tick… Tock.
Other crypto market traders are also predicting a pullback. Popular crypto analyst Ali Martinez noted that here is a notable discussion surrounding a potential head-and-shoulders pattern forming on the Bitcoin daily chart.
The Bitcoin (BTC) daily chart reveals a potential sell signal on the horizon, with the TD Sequential indicator displaying a green 9 candlestick. Furthermore, the Relative Strength Index (RSI) has reached 74.21, a level that has historically signaled significant corrections since March. An imminent price correction seems likely unless Bitcoin manages to secure a daily candlestick close above the $31,560 mark, he wrote.
There’s a lot of talk around a potential head-and-shoulders pattern forming in #Bitcoin daily chart. Let’s dissect it!
The $BTC daily chart hints at a possible sell signal emerging tomorrow, based on the TD Sequential indicator flashing a green 9 candlestick. Not to mention, the… pic.twitter.com/h7CiwRFcHb
— Ali (@ali_charts) October 22, 2023
On the downside, the BTC price can see a pullback or retracement to $29,500 or even $28,630!
Bitcoin Bulls and Bears Locked In Tight Battle
The exchange’s long/short ratio indicated that both buyers and sellers were actively participating in the market, with no clear dominance at the moment. The slight variance between long and short positions could play a crucial role in determining whether there will be a price pullback or an extension of the ongoing bullish trend.
As the price nears important liquidation levels, traders are advised to proceed with caution when considering new positions. The latest data on the price charts, as of the current time, still suggests a bullish outlook for Bitcoin (BTC). Nevertheless, it’s worth noting that sellers are actively exploring short positions.
While the Bitcoin price surged past $30,000 twice this year, this time it’s different. Over the past few weeks, Bitcoin has been accompanied by altcoins during this bull run.
In other observations, Santiment, a research firm, identified a new market dynamic in the cryptocurrency space alongside Bitcoin’s recent price surges. It pointed out that altcoins were also experiencing upward movements in tandem with Bitcoin, a phenomenon that had not been as pronounced during previous instances when Bitcoin reached the $30,000 level.
Unlike #Bitcoin‘s previous two brief visits to $30K, this latest resistance level break to end the weekend has occurred as #altcoins surge, rather than falling behind $BTC‘s price. $LINK, $MATIC, $UIP, $APT, and $AAVE are all seeing their best performing decouplings of 2023. pic.twitter.com/ci7MPh25yf
— Santiment (@santimentfeed) October 23, 2023
At the same time, big market players like MicroStrategy’s Michael Saylor said that he would double down on the Bitcoin bet.
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