Bitcoin (BTC) has consolidated around $34,000, as it has stabilized at a 15% daily gain since Wall Street trading began on October 24th.
Opinions are divided on Bitcoin procurement rate
Cointelegraph Markets Pro and TradingView We tracked BTC price movements throughout the day, focusing on $34,000 at the time of writing.
The pair had previously touched a 17-month high near $35,200 on renewed excitement over the potential approval of a Bitcoin spot price exchange-traded fund (ETF) in the United States.
Analyzing the sequence of events that led to the daily $5,000 candlestick and monitoring the resource’s material indicators revealed a support/resistance (R/S) reversal at $30,600.
The speed with which the market has broken resistance over the past year and a half has been astonishing, says X Post. read. “Honestly, we expect more resistance at $30,500, $31,500 and even he’s $33,000,” Material Indicators said.
“When these levels disappeared and the $87 million buy wall appeared at $36,000, the market did not hesitate to lay the foundations for an R/S reversal.”
“When $32,000 was withdrawn, some of the overhead liquidity was withdrawn and BTC could easily rise to $35,000 quickly because the liquidity was thin.”
The post added that there is now a “potential retrace opportunity” as bidding liquidity has been lifted somewhat from below.
One of the two charts included covers the last 24 hours of Binance’s order book.
Other factors contributing to deeper consolidation include exchange-wide funding rates, which are well into positive territory at the time of writing.
Be careful with new long hair❗️ pic.twitter.com/jsuXPdIhRq
— Crypto Bullet (@CryptoBullet1) October 24, 2023
“Funding is very positive,” popular trader CryptoBullet wrote during the X discussion.
“That means the majority of traders are desperate. The majority is never right. Market makers will need to mop up these late-game longs.”
BTC short liquidation amount on October 23rd and 24th reached $161 million and $48 million, respectively. data From the monitoring resource CoinGlass.
Commenting on the funding rate, fellow trader Daan Crypto Trades argued that the market may still maintain its direction, this is part of familiar bull market behavior.
#bitcoin It’s still a permanent premium, but it has come down a bit.
Note that in bull markets, positive funding rates often lasted for weeks as funding rates were considered simply “the price you pay for participating.”
— Daan Crypto Trades (@DaanCrypto) October 24, 2023
Bitcoin’s retracement for the day came within a reversal of the dollar’s strength, which weakened the previous day.
Dollar rebounds as BTC price strengthens
Related: BTC-related stocks hit multi-week highs as Bitcoin price soars
The US dollar index (DXY) regained 106, up 0.5% from the intraday low.
Bitcoin continues to show mixed reactions to DXY movements, although a clear inverse correlation was once evident.
— Trader Tardigrade (@TATrader_Alan) October 24, 2023
in Recent commentarypopular macro analyst James Stanley argued that the release of Personal Consumption Expenditures (PCE) data on October 26th will be a major determining factor for DXY in the short term.
As reported by Cointelegraph, this comes ahead of the Federal Open Market Committee (FOMC) meeting on November 1, where the Federal Reserve will decide on interest rate policy.
“104.70 was the low from the last FOMC meeting, and the bulls need to defend it,” Stanley wrote.
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.