Bitcoin has been consolidating inside a large range for the past several months. Although October has historically produced positive results for Bitcoin, the bulls are struggling to repeat the performance in 2023.
The high interest rate environment and the Israel-Hamas conflict have increased the uncertainty, limiting the upside in the near term. While inflation and war may have kept prices down in the short term, Billionaire investor Paul Tudor Jones said in a recent interview with CNBC that he “can’t love stocks” but he is in love with “Bitcoin and gold.” He expects the risk-off sentiment to prevail if the Israel- Hamas confrontation escalates further.
We said in the previous analysis that the bulls are expected to defend the $28,185 level with all their might and they did just that on October 8th. This indicates that Bitcoin remains stuck inside the large range between $26,000 and $30,000. The bulls pushed the price above the 20-day exponential moving average (EMA) on October 8 but failed to challenge the 50-day simple moving average (SMA).
This suggests a lack of demand at higher levels. The bears tried to sink the price back below the 20-day EMA but the bulls held their ground. This shows that the bulls are trying to flip the 20-day EMA into support. If they do that, the BTC/USD pair could climb to the 50-day SMA. This level may again act as a strong hurdle but if cleared, the pair could reach $28,185.
If the price turns down sharply from this level, it will indicate that the pair may consolidate between $25,000 and $28,185 for a few more days. The positive view will invalidate in the near term if the price slips back below the 20-day EMA. That will embolden the bears who will again take a shot at the crucial support at $26,000. If this level cracks, the pair may collapse to $20,000
Lastly please check out the advancement’s happening in the cryptocurrency world.