Bitcoin (BTC) surged to fresh October highs at the open on Wall Street on Oct. 3, as concerns from Credit Suisse mounted.
Traders fall into a BTC range
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair targeting $19,500 after starting the month flat.
The largest cryptocurrency reacted positively to lower-than-expected U.S. manufacturing data, while in Europe, market turmoil over Credit Suisse gathered pace despite executive reassurances.
“We are starting October operations in the same congested area that we ended September in,” wrote on-chain analysis resource Material Indicators in one of several updates of the day.
“The MA of 21 is behaving as a ceiling in the price of BTC, but it is expected to be retested soon. I need him to for any chance of getting back to 20 level.”
Material Indicators was referring to Bitcoin’s 21-day moving average (MA) around $19,400, which could now mark a resistance/support turn.
another post revealed that a proprietary trading indicator was flashing “long” on the daily timeframes, raising hopes that the bulls would be able to tackle the $20,000 mark.
Nevertheless, Analyzing the behavior of derivatives traders, William Clemente, co-founder of digital asset trading and research firm Reflexivity Research, warned that long positions were too eager to confirm a trend reversal.
“It is important to keep an eye on the BTC derivatives market. At the moment, the longs have piled on every move higher in price,” 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 ‘fade’ rallies.”
Data from the order book of Binance, the largest exchange by volume, showed that the BTC/USD pair was trading in a tight range bounded by sellers at $19,500 and bid interest around $19,150.
Below this figure, support was found at $18,800 at the time of writing.
US stocks offset losses as dollar cools
Regarding the macroeconomic situation, US Purchasing Managers’ Index (PMI) data, which came in below expectations, put pressure on bond yields.
At the same time, oil and silver, in particular, gained, while in equity markets, the S&P 500 and Nasdaq Composite Index rose 1.8% and 1.3%respectively.
“More data on PMI, unemployment and job openings will be coming next week. The turn of the markets? It looks like it is”, answered Michaël van de Poppe, CEO and co-founder of trading company Eight, as part of the market commentary.
Van de Poppe described furthermore the current Bitcoin trading rank as “ultra boring”, while expecting the cryptocurrency to copy the performance of silver.
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