Market Analysis: Bitcoin Price Cannot Stay above $28k

FXOpen

The first day of October coincided with the first attempt of the bulls to overcome the resistance level of USD 28,000 per coin, but on the 2nd of October, the sellers showed their presence. Since that time, the price has repeatedly exceeded the level of 28k, but each time not for long, after which a decline followed.

Yesterday, there was another such decline. As the BTC/USD chart shows today, the rate is around 27,600. And it seems that the bulls may no longer have the strength to make a new attempt.

Analyzing the bitcoin market on September 8, we pointed out a list of bearish arguments that give reason to doubt the positive prospects for bitcoin. The described price action of about 28k is another bearish argument in this list.

Moreover:
→ the growth of B→C is approximately 50% Fibo of the decline of A→B;
→ the top of early October provides more support for building a downward channel (shown in red). It is possible that the price may now move from its upper border to its lower border.

In the short term, longs can expect the rising trendline structure (shown in blue lines) to help push the price above the psychological USD 30k level. But, let’s say, if this does not happen, then the market will again fall to the key support zone of USD 25-25.5k. Will it be able to support bullish momentum for the third time (as it did in September and June)?

99-year-old Charlie Munger gives the hint. At October's Zoomtopia conference, he again railed against investing in digital assets, saying it was the "stupidest investment” because “[m]ost of those investments are going to zero.”

FXOpen offers the world's most popular cryptocurrency CFDs*, including Bitcoin and Ethereum. Floating spreads, 1:2 leverage — at your service. Open your trading account now or learn more about crypto CFD trading with FXOpen.

*At FXOpen UK and FXOpen AU, Cryptocurrency CFDs are only available for trading by those clients categorised as Professional clients under FCA Rules and Professional clients under ASIC Rules respectively. They are not available for trading by Retail clients.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

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