Bitcoin made a remarkable recovery, attempting to establish support at $26,000 during the Wall Street opening on September 12. This swift rebound sparked excitement among traders after Bitcoin’s recent dip to three-month lows.
Trader Sentiments and Resistance Ahead
Prominent traders expressed their sentiments, with some eyeing a test of $27,000 and even $28,000 in the short term. However, Keith Alan, co-founder of Material Indicators, warned of substantial resistance levels ahead. These include the 21-Day Moving Average (MA), a potential Death Cross between the 50-Day and 200-Day MAs, and the 100-Day MA, which aligns with the range high. Alan emphasized the importance of Bitcoin maintaining support at $24,750.
Alan cautioned against expecting an uninterrupted surge to the top of the range, highlighting that clearing each resistance level requires strength from the bulls. He emphasized the need for the herd to regroup before tackling the next challenge.
Market Outlook for Q3 and Beyond
Looking ahead to the remainder of Q3, trading platform QCP Capital warned of potential selling pressure for Bitcoin and the crypto market. Various macroeconomic factors and industry-specific hurdles, including the US Federal Reserve’s interest rate decision, loom as bearish events. QCP anticipated a neutral market sentiment from mid-October onwards, suggesting the possibility of a “true bottom” for crypto in late October, followed by a bullish end to the year and a positive start to 2024.