Although October was historically a bullish month in Bitcoin, the slow start of the month and the slow end to the month made it difficult for the market to adjust. But this sentiment was soon erased when the crypto market took a positive turn Tuesday. By the close of the trading day on Wednesday, BTC’s price had surpassed $20,000. What does BTC’s rejection of $21,000 mean?
Bitcoin fails to beat $21,000
Despite the gains of the previous two days bitcoin was still rejected at $21,000. This was the point where bears were quickly able to mount resistance. The shorts that had been placed in the market anticipating a downturn had also contributed to the resistance.
Even though bitcoin’s outlook remains bullish, the current point to beat is $21,000. This would make it easy for a bull considering the recent rally. Investors remain cautious, despite market gains, because of the slow growth in crypto assets.
In anticipation of the next round, bulls would need to increase support at $21,000 so that they can hold it. Bears may try to bring bitcoin back to 20,000. If it faces a rejection of $21,000, the next step would be to strengthen support at $20,500. Now, bitcoin is at the lowest support level, just below $20,200. This level does not have the same strength as that of $20,500.
Source: BTCUSD on TradingView.com| Source: BTCUSD on TradingView.com
What’s Next For BTC?
Given the excitement of digital assets surpassing $20,000, the rejection at $21,000 is not a major setback for the market. Instead, bulls have emerged and positive forecasts are being made.
Jim Messina, ex-US President Obama’s Chief of Staff has been one of the most bullish during this time. Messina appearedFox News interviewed him and he stated that the digital asset would actually recover the $60,000, adding that he would place his Porsche bet on this. It follows bullish forecasts from others in the space such as ARK Invest’s Cathie Wood who put the digital asset at a price of $1 million apiece in the next 8 years.
However, it is important to note that bitcoin’s trading volume is on the decline in the last 24 hours, which could suggest a quick burn-off of the recent spark. This can lead to a loss of momentum, particularly in short-term periods of growth. Bitcoin could move to $21,000 and then try again. However, if that fails it’s possible for bitcoin to drop below $20,000 again.
Positive news is that the BTC sell-offs have retreated in the past two days. Bitcoin’s move above its 50-day moving average has turned indicators for the short-term green and there is now mounting buy pressure that is expected to continue into the weekend.
Featured image taken from MARCA. Chart from TradingView.com
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