Despite initial setbacks driven by bearish U.S. job data, Bitcoin is poised for gains, grappling with substantial resistance at the $28,000 level. This resistance is fortified by key moving averages, hindering rallies throughout the week.
Resilience Amid Economic Data
Bitcoin encountered a brief dip, falling nearly 2% below $27,300 following robust U.S. employment data that exceeded expectations with 336,000 jobs added in September. However, Bitcoin swiftly rebounded, hovering just above $28,000 at present, marking a 1.5% increase in the past 24 hours.
Bitcoin’s performance slightly lags behind the broader crypto market, as seen in CoinDesk Market Index’s (CMI) 1.6% gain. Meanwhile, U.S. stocks also recovered, with the Nasdaq showing a 1.75% advance by the close of Friday’s trade.
Altcoins like Avalanche’s AVAX and Solana’s SOL led the market rebound, registering gains of 6% and 3.8%, respectively. Ether (ETH) also broke its losing streak against BTC, exhibiting a 2% bounce and trading at $1,650.
Overcoming Resistance at $28,000
Bitcoin faces formidable resistance at the $28,000 level, attributed to both the 200-day and 200-week moving averages. Rachel Lin, CEO of decentralized derivatives exchange SynFutures, highlights that these moving averages have been thwarting price increases. A sustained break above $28,100, however, could signal a positive trend, potentially pushing Bitcoin towards $30,000.
Bitcoin versus long-duration U.S. Treasury bonds (IntoTheBlock)
Decoupling from Traditional Assets
Notably, Bitcoin is displaying resilience in the face of bond market turbulence, in stark contrast to 2022. Last year, when the Federal Reserve increased interest rates, long-duration bonds plummeted, exerting downward pressure on risk assets like Bitcoin. However, this year, even as long-term bond prices decline, Bitcoin continues to climb.
Lucas Outumuro, head of research at IntoTheBlock, suggests that Bitcoin’s value proposition is being reevaluated amid global uncertainty. This shift underscores Bitcoin’s growing independence as an asset class, with Michael Silberberg, head of investor relations at crypto hedge fund AltTab Capital, emphasizing that this decoupling supports the evolving narrative of Bitcoin as ‘digital gold.’