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 Cointelegraph 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.
$BTC update
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…..
