Bitcoin has managed to sustain above the $19,000 level but hasn’t crossed the crucial $20,000 mark yet. The buying opportunity for the popular cryptocurrency remains strong but analysts warn traders of a decline in the asset’s price in the short term.
At the time of writing this article, Bitcoin gained 2.16% in the last 24 hours. It’s trading at $19,602. The world’s most favored cryptocurrency reacted positively to lower-than-expected United States manufacturing data. Material Indicators said trading in the fresh month of October has been kicked off in the same congested area that the industry ended in September. The on-chain analytics resource highlighted that the 21 DMA is behaving like a ceiling on BTC price, but expect it to be retested soon. It was referring to Bitcoin’s 21-day moving average at around $19,400. This is potentially coming in for a resistance or support flip.
Another proprietary trading indicator stated a flashing long on daily timeframes. This suggests that bulls would be able to tackle the $20,000 mark. William Clemente, the co-founder of Reflexivity Research, warned that long positions were too eager to confirm a trend change. He said it’s important to monitor the BTC derivatives market; longs have been piling in on every move up in price. Clement explained that this is not what the industry wants to see for a full-on trend reversal similar to the end of July 2021. Participants must be conditioned to fade rallies.
Michael van de Poppe, CEO, and co-founder of Eight, believes that in the coming week more PMI data, unemployment, and job openings will be coming in. It might be a turn in the markets. He described Bitcoin’s current trading range as ultra-boring and hopes the cryptocurrency would copy silver’s performance.
Meanwhile, Ethereum is changing hands at $1,328 – up by 2.81% in the last 24 hours. The overall crypto market is lighted in green.