Bitcoin price puts October high in $20,000 range as US stocks rise
Bitcoin (BTC) climbed to new October highs at the Wall Street open on October 3 as concerns about Credit Suisse increased.
Traders are approaching distance bound BTC
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is targeting $19,500 after starting the month flat.
The biggest cryptocurrency reacted positively to lower-than-expected manufacturing data in the US, while in Europe market turmoil over Credit Suisse gathered momentum despite executives’ assurances.
“We start October trading in the same congested area that we closed September,” the chain of analysis resource Material Indicators wrote in one of several updates on the day.
“21 DMA is acting as a cap on BTC price, but expect it to be retested soon. Need to do so for any chance of regaining the 20s.”
Material Indicators referenced Bitcoin’s 21-day moving average (MA) around $19,400, this could now potentially come in for a resistance/support flip.
A new post revealed a proprietary trading indicator that flashes “long” on daily time frames, raising hopes that bulls will be able to tackle the $20,000 mark.
Analyzing the behavior of derivatives traders, William Clemente, co-founder of digital asset analytics and trading firm Reflexivity Research, warned that long positions were too eager to confirm a trend change.
“Important to monitor the BTC derivatives market. So far it has been piling up long after every rise in price,” he explained.
“This is not what we want to see for a complete trend reversal (similar to late July 2021). We want to see participants conditioned to ‘fall’ rallies.”
Order book data from Binance, the largest exchange by volume, meanwhile knew BTC/USD is acting in a tight range bounded by sellers at $19,500 and bids around $19,150.
Below that was the support of $18,800 at the time of writing.
US stocks absorb losses as dollar cools
On the macro front, US Purchasing Managers Index (PMI) data that came in below expectations pushed bond yields.
Related: BTC Price Still Not at ‘Max Pain’ – 5 Things to Know in Bitcoin This Week
At the same time, oil and silver in particular increased, while on the stock markets the S&P 500 and the Nasdaq Composite Index were respectively 1.8% and 1.3%.
“Next week more PMI data, unemployment and vacancies will come in. The turn in the markets? Seems like it,” Michaël van de Poppe, CEO and co-founder of trading firm Eight, black as part of market commentary.
Van de Poppe in addition described Bitcoin’s current trading range is “ultra dull” as they hope the crypto will copy silver’s performance.
The US dollar index (DXY), a classic headwind for crypto, tumbled below 112 points on the day.
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