Bitcoin (BTC) recovered and held $20,000 on October 6 as the latest drop penalized short speculators.
1 hour BTC/USD candlestick chart (Bitstamp). Source: TradingView
Bitcoin holds $19,600 ‘important’ area
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD bounced off the local lows of $19,740 on Bitstamp around the October 5 Wall Street open.
The pair then reversed its earlier losses, triggering an early sell-off to $20 million in liquidations in 24 hours.
BTC filter chart (screenshot). Source: Coinglass
At the time of writing, Bitcoin was trading around $20,250, after hitting $20,447 on the day.
Michael van de Poppe, CEO and founder of Eight Trading, had pointed to downturns as an appropriate entry point.
“The correction is actually happening where $19.8K-$19.9K is an area to watch, but also a retest of around $19.6K is important for Bitcoin,” he wrote at the time.
Meanwhile, famous trader Il Cap of Crypto reiterated his current thesis on the short-term outlook of the cryptocurrency market. He said the BTC/USD pair should continue rising before decisive market rejection leads below the recent trading range.
He predicted: “The market is expected to rise 3-6%, on average”:
“Some Chetcoins may be an exception and have higher returns. Then I would like to see bearish signals, but yes, this resistance should hold. Next we will see a strong downward movement towards new lows.”
The US Dollar Index (DXY), which came from all-week highs, continued to see comparative weakness, which helped boost sentiment among risky assets.