Bitcoin (BTC) experienced a moderate increase in trading on October 3, after giving back $1,300 of its gains. The focus of BTC price action was around $27,500, with the cryptocurrency descending from six-week highs near $28,600 before stabilizing at $27,335. Despite the possibility of a “fakeout,” market participants remained calm. Traders expressed that a slow grind back up to the highs would be the ideal scenario for Bitcoin bulls, and the behavior of Asian traders during the Asia session would be crucial in determining market direction. Spot traders faced selling pressure, leading to a sell-off, but bid depth started to return, although overall liquidity remained wide.
Material Indicators, an on-chain monitoring resource, warned of downside signals on its proprietary trading tools on daily timeframes, indicating a continuation of the downtrend. However, a return past $26,800 could lead to a reconsideration of the bearish outlook. It emphasized that the same trading range that Bitcoin has been in for months is still intact until there is a clear breakout. The possibility of retesting resistance cannot be ruled out until Bitcoin prints a lower low on the weekly chart. Analysts also noted that Bitcoin could potentially rise beyond $29,000 before continuing lower within its current range.
In conclusion, Bitcoin experienced a moderate increase in trading, recovering some of its recent losses. Market participants remained cautious, hoping for a slow climb back to previous highs. On-chain indicators suggested a continuing downtrend, but a return past a certain price level could change the outlook. Bitcoin’s trading range has remained unchanged for months, and a clear breakout is needed for a significant shift in market direction. Traders anticipate further price movements within the range and potential resistance retesting before any decisive trend emerges.
