Bitcoin soared to a new three-month high on October 23, boosted by snap gains during the first Asia trading session of the week. The largest cryptocurrency, Bitcoin, experienced its first weekly close above $30,000 since summer, marking a significant milestone. However, it now faces critical resistance levels, particularly the 2023 high at $31,800.
BTC/USD 1-hour chart. Source: TradingView
Exercise Caution Amid Resistance
Prominent trader Jelle expressed caution, highlighting that Bitcoin has encountered key resistance for the third time in the past six months. While acknowledging the need for vigilance, Jelle discouraged a bearish stance solely based on approaching resistance. Instead, he anticipates an eventual breakthrough, which could result in a powerful price surge.
BTC/USD annotated chart. Source: Jelle/X
Market analysts, including Matthew Hyland, suggested that Bitcoin is poised for another upward move, drawing parallels to its performance before reaching the year-to-date high. Additionally, Skew, another trader, identified short squeezes in progress, indicating heightened market activity.
Altcoins Follow Suit
Research firm Santiment observed a noteworthy trend accompanying Bitcoin’s recent gains. Altcoins, which typically shadow Bitcoin‘s movements, were also surging. This phenomenon diverged from previous instances when Bitcoin approached the $30,000 threshold. It suggests a potentially bullish outlook for the broader cryptocurrency market.
📈 Unlike #Bitcoin‘s previous two brief visits to $30K, this latest resistance level break to end the weekend has occurred as #altcoins surge, rather than falling behind $BTC‘s price. $LINK, $MATIC, $UIP, $APT, and $AAVE are all seeing their best performing decouplings of 2023. pic.twitter.com/ci7MPh25yf
— Santiment (@santimentfeed) October 23, 2023
As Bitcoin continues to approach the $31,000 mark, traders remain watchful for potential price fluctuations. Some experts recommend keeping an eye on the $29.5K – $28.7K range as a potential area for continuation signals. Despite the need for caution, optimism persists in the cryptocurrency community, as many foresee exciting developments in the coming months.
