Bitcoin (BTC) surged to new October highs at the October 3 Wall Street open as concerns about Credit Suisse escalated.
Hourly candlestick chart BTC/USD (bit stamp). Source: TradingView
Traders are approaching the Bitcoin area
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is targeting $19,500 after starting the month flat.
The major cryptocurrency reacted positively to lower-than-expected US manufacturing data, while market turmoil over Credit Suisse is gathering pace, despite assurances from executives in Europe.
“We enter October trading in the same busy territory we closed in September,” online analyst Material Indicators wrote in one of today’s many updates.
“The 21 DMA is acting as a BTC price ceiling, but we expect it to be retested soon. This is necessary for any chance of turning twenty again.”
Physical indicators point to Bitcoin’s 21-day moving average (MA) around $19,400, which could now lead to a resistance/support reversal.
BTC/USD (Bitstamp) 1-day candlestick chart for 21MA. Source: TradingView
The following post shows that the initial trade indicator is flashing “long” on the daily time frames, raising hopes that the bulls could break the $20,000 mark.
Analyzing the behavior of derivatives traders, William Clementi, co-founder of digital asset analytics and trading firm Reflexivity Research, warned that long positions are too eager to confirm a trend change.
“It is important to monitor the bitcoin derivatives market. Currently, long positions are accumulating with each upward movement in price.
“This is not what we want to see for a complete reversal (similar to late July 2021). We want participants to be in the mood for ‘fading’ rallies.”
Meanwhile, order history data from Binance, the largest exchange by volume, showed BTC/USD operating in a narrow range limiting sellers to $19,500 with interest rates around $19,150.
Below this level, support is at $18,800 at the time of writing.
BTC/USD (Binance) order book data chart. Source: Fundamental Indicators / Twitter.
US stocks rose as the dollar fell
On the macro side, bond yields pushed lower than expected US Purchasing Managers’ Index (PMI).
Related: BTC Price Still Not at ‘Maximum Pain’ – 5 Things to Know About Bitcoin This Week
Meanwhile, oil and silver in particular rose, while the S&P 500 and Nasdaq Composite rose by 1.8% and 1.3% respectively in the stock markets.
There will be additional PMI, unemployment and jobs next week. Turn the markets? Apparently,” Mikael van de Poppe, CEO and co-founder of Trading Eight, replied as part of a commentary on the market.
Van de Poppe also described the current Bitcoin trading range as “very boring”, with hopes that the cryptocurrency will mimic the performance of silver.
The US Dollar Index (DXY), a classic crypto headwind, fell below 112 points on the day.