bitcoin faces resistance at its yearly high of $35,000 amid a few days of choppy price action. Right now, everything seems set for a pullback, considering the cryptocurrency’s past price action following sudden price surges.
However, according to some crypto analysts, bitcoin is currently trading at a high premium. This means its price is inflated right now due to all the hype and media attention. crypto Behavior Analysis Data bitcoin-investors-signs-of-euphoria-will-end-rally/” rel=”nofollow”>Santiment has shown euphoria regarding bitcoin among investors in social media posts. At times, this euphoria has preceded a drop in the btc price.
MN Trading analyst Daan Foppen warns that the cryptocurrency is currently trading at a significant premium and notes that the best time to buy is at a discount price.
Analysts recommend waiting for the next drop to buy
bitcoin‘s current surge can likely be attributed to investors’ FOMO regarding the approval of bitcoin spot ETFs. This FOMO was reinforced by the appearance of BlackRock’s iShares bitcoin Trust on the DTCC website.
The bitcoin Trust wasbitcoin-etf-intentional/” rel=”nofollow”> removed from DTCC website without explanation, leading to ongoing consolidation and a pause in price growth. However the the listing has since returnedwith slight changes.
although analyst Daan Foppen attributed this recent rise in bitcoin price to a bitcoin-comeback-trading-desks-awaken/” rel=”nofollow”>good sign for bulls, warned that the price is “currently trading in a bearish monthly fair value gap (FVG).” A good step at this time is to keep an eye on the monthly close to detect a possible change in a scenario that will show the next direction after the current consolidation.
Foppen believes that a monthly close above $31,800 will solidify the beginning of long-term bullish momentum, while a close below the $31,800 mark will demonstrate that the bears are still in control.
“We had a convincing break above the most recent high of 31,800, which is crucial for further bullish momentum. If we close the candle like this, we can say that we have printed another higher high. If we close below 31.8K, my thesis will change from bullish to bearish, but for now we have nothing to worry about,” Foppen said.
According to Foppen, a better strategy before buying it is to wait for discount prices at previous resistance levels. The analyst performed this analysis by sharing several btc price charts over different time periods.
<img decoding="async" class="alignnone size-medium wp-image-557649 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-19.png?w=460&resize=460%2C266″ alt=”bitcoin” width=”460″ height=”266″ srcset=”https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-19.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-19.png?w=460&resize=460%2C266 460w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Source: MN Trading
Examining the 1-hour period, he noted that the best discount price for cautious traders could be the “untested order block around $31,000, which is in line with the high of the previous range.”
<img decoding="async" class="alignnone size-medium wp-image-557650 aligncenter" src="https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-1-2.png?w=460&resize=460%2C265″ alt=”bitcoin 1″ width=”460″ height=”265″ srcset=”https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-1-2.png?w=512 512w, https://www.newsbtc.com/wp-content/uploads/2023/10/bitcoin-1-2.png?w=460&resize=460%2C265 460w” sizes=”(max-width: 460px) 100vw, 460px” loading=”lazy” data-recalc-dims=”1″/>
Source: MN Trading
What’s next for bitcoin?
At the moment, bitcoin is trading at a premium, meaning it is at the upper end of its typical range. However, considering the volatility and still nascent phase of the crypto industry, it may be somewhat difficult to use bitcoin‘s past performance to predict future results.
bitcoin rose 22.30% in a 7-day period, but the 24-hour trading volume fell 27.48%, indicating that the price increase may be starting to stabilize. However, it is certain that a very strong price rise will occur in the near future.
Adam Back, CEO of Blockstream, believes that the digital currency now bitcoin-ceo-sees-price-over-100000/” rel=”nofollow”>has sufficient foundations to push it beyond the $100,000 price tag.
<img decoding="async" loading="lazy" class="aligncenter" src="https://technicalterrence.com/wp-content/uploads/2023/10/Bitcoin-Spot-ETF-Expert-Reveals-Why-BlackRocks-DTCC-Listing-Doesnt" alt="Tradingview.com bitcoin Price Chart (btc Premium)” width=”2650″ height=”1758″/>
btc corrects downward | Source: BTCUSD on Tradingview.com
Featured image from The Daily Hodl, chart from Tradingview.com
