Bitcoin looks like a stablecoin compared to the U.S. dollar index on the day, with BTC price levels of interest close to spot.
Market Update
Bitcoin (BTC) stayed glued to $27,500 at the Oct. 4 Wall Street open as attention continued to focus on rampant United States yields.
Analysis: $27,000 now “key” for BTC price
Data from Cointelegraph Markets Pro and TradingView showed a calm day for BTC price action while U.S. dollar volatility ruled.
After its own spate of hectic trading to start the week, Bitcoin was once more seeking direction, with market observers marking out key price points.
Popular trader Skew flagged market takers selling toward $27,600, lending “importance to this price level reclaim.”
“Get that reclaim & decent pop will come,” he predicted in part of the day’s X analysis.
$BTC
takers selling into $27.6Kadds importance to this price level reclaim
Get that reclaim & decent pop will come
note coinbase CVD (actual buyer led price into $27.6K) pic.twitter.com/Jr6MDb7ru1
— Skew Δ (@52kskew) October 4, 2023
Fellow trader Crypto Tony additionally highlighted $27,000 as the line in the sand to the downside.
Holding that $27,000 low, so i remain long for the time being and would be shorting if we lose this low here, or pump up and reject hard as suggested on chart below pic.twitter.com/bSDjWWaJEU
— Crypto Tony (@CryptoTony__) October 4, 2023
Updating his own trading strategy, meanwhile, trader Mark Cullen likewise placed emphasis on $27,000 holding as support.
“Bitcoin getting a reaction from its first attempt into my zone & a tap of the break out trendline,” accompanying commentary stated.
“Market conditions in Tradfi aren’t great so pressure’s down. Lets see if BTC can hold this area for a while longer, until other markets stabilize. Holding 27k is key for $BTC!”
Bitcoin bides its time as dollar sees sharp retrace
As Cullen and others explained, the mood on legacy markets was decidedly less stable than Bitcoin on the day.
Related: Bitcoin analysts still predict a BTC price crash to $20K
This came thanks to U.S. 30-year bond yields surging to 16-year highs — something which got commentators wary of a potential meltdown to come.
Skew suggested that this angst over how macro forces would play out was responsible for the lack of significant BTC trading volume.
“Not much besides dipping toes in the water kind of bid other than that it’s perps mostly buying,” another X post stated earlier.
“Market is likely trying to digest everything that is going on terms of risk parameters and exposure. Many are capitulating to cash imo under market distress.”
U.S. dollar strength delivered upheaval of its own prior to the Wall Street open, with the U.S. dollar index (DXY) swiftly dropping from levels not seen since Q4 last year.
As customary in recent times, BTC/USD continued to shake off snap DXY moves.
Commenting on the situation, Sven Henrich, founder of NorthmanTrader, showed that long term, DXY chart performance was behaving as expected.
“Amid all the chaos & volatility one amazingly consistent clean chart: The US dollar respecting the channel trend lines,” he told X subscribers.
“Negative divergence on recent highs at top of the channel. What happens with this will likely be one of the key market drivers for the rest of the year.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
