Bitcoin (BTC) failed to break above $20,000 despite hitting a new weekly high on Oct. 18 as market watchers awaited action.
Bitcoin Meanders as Stocks Rise
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair defied volatility once again on the day.
The pair was remarkably stable despite stronger moves in US stocks at the open on Wall Street. At the time of writing, the S&P 500 and the Nasdaq Composite Index were up 1.5% and 1.2%, respectively.
“We are seeing another well-deserved relief rally in equities,” said the Kobeissi Letter financial commentary appeal to Twitter followers.
“After more than a month of almost straight-line downward price action, a bounce was needed.”
The post continued with a warning about the upcoming Federal Reserve meeting where a new rate hike would be announced.
“However, as third-quarter earnings kick in and the next Fed meeting approaches, we’re far from sure. Hit the stops and don’t get caught out,” he advised.
With the mood still uncertain, crypto commentators have largely stuck to existing predictions when it comes to short-term price movements.
“The zone around $19,300 is key to hold and then we can expand to $22,200,” wrote Michaël van de Poppe, founder and CEO of trading platform Eight, in part of a tweet of the day.
The popular trader Il Capo of Crypto declared that Bitcoin “is ready to pump over 20,000”, having already given a target of $21,000 for the relief rally.
Another trader, Crypto Tony, was more conservative about the potential range of the BTC/USD pair in the coming week, marking the area around $20,000 as a likely place to make a long-term path decision.
Exchange activity reminiscent of late 2020
Analysis of exchange order books yielded interesting conclusions about the nature of the current price setup.
On Binance, the largest exchange by volume, a sizable wall of resistance was active at $20,000, something on-chain analytics resource Material Indicators compared to November 2020.
At that moment, Bitcoin abruptly broke through the $20,000 barrier to start months of rallies to new all-time highs near $60,000.
“The last time BTC had such a large sell wall directly above the active trading range was November 2020,” commented Material Indicators.
“It was literally the same amount at the same price level. More than $100 million in demand liquidity was consumed to start the bull run. Don’t think a break from here will do the same thing, but…”
The Capo of Crypto highlighted also the activity in the derivatives platform FTX. Traders there had put in strong support, he noted, arguing that this was “pushing the price higher”.
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