Bitcoin (BTC) fell on September 29 from $ 10,950 to $ 10,630 a night, marking a 3% drop. After diverging at $ 11,000, the trading sentiment remains mixed.
Some are cautiously optimistic that Bitcoin will return to the $ 10,700 level. Technically, analysts say the $ 10,700 area is an important key price point for Bitcoin in the near future.
Others say that the evolution of BTC’s price changed in the short term after the failure. Bitcoin’s intense reaction to its critical $ 11,000 resistance level poses the threat of a major pullback.
Beware of the optimist: what Bitcoin needs to do to recover
There are three main macro levels for Bitcoin, according to a trader under a pseudonym known as the “Byzantine General”.
These three levels are $ 10,700, $ 9,800 and $ 11,800, and $ 10,700 represents a short-term hedge for BTC. The therapist said:
10700 master levels. 9800 and 11800 are the next important levels. ”
If Bitcoin returns convincingly $ 10,700, it increases the likelihood of trying again by $ 11,800 in October. A new monthly light opens on October 1, and there may be a price increase when the market is open.
However, if BTC cannot stay above $ 10,700, it will increase the chances of getting $ 9,800. It would also increase the probability of testing a $ 9,600 gap in CME if BTC rejects the $ 10,700.
Short term bearish scenario
Another Bitcoin trader known as “Benjamin Blanz” predicts that “wild rejection” will lead to a major correction.
He said that the recent rejection of $ 10,950 bitcoin had reached a critical Fibonacci level. In technical analysis, levels in the Fibonacci sequence are major areas for potential trend reversals.
The trader said the drop could be under $ 10,000, possibly into a support range from $ 9,600 to $ 9,800. He said:
“Like clockwise, 0.78 pressure is perfect for BTC and a sharp trench. We expect a new low below 9.5k, but instead I have a short position in ETH because I think it will drop further. Rest assured, this is a clear downtrend, I’ll mostly return to Stability again. ”
In addition to bearish rejections, chain and network activity indicators indicate short-term bearish tendencies. Santiment researchers say targeted activity on the Bitcoin blockchain is declining.
A decrease in the root cause of increased market uncertainty can increase pressure from sellers. The researchers said:
“Why does $ BTC continue to decline as we approach $ 11,000? Our DAA divergence pattern demonstrates that there is a serious shortage of targeted activity on the network. Today it is the fifth largest bearish forecast in the past six months.”
Online indicators and calculations are usually medium to long term signals, and often represent imprecise price developments. Therefore, in the short term, the bitcoin price is likely to depend on whether it tests $ 11,000 or risks falling to $ 10,000.
However, other analysts still saw positive signs. For example, the hashband difficulty indicator indicates a “buy zone” for Bitcoin, supporting a bullish case in the medium term for BTC.