We have reached October 7th, but the cryptocurrency markets have not yet started their double-digit movements like in previous years. Experts believed that October, which has only caused two declines in the last 10 years, would also host major rallies in 2023. However, it is too early to rush as we are only at the end of the first week of the month. Because Bitcoin is very close to the decision level.
Will Bitcoin Price Rise?
At the time of writing, the BTC price continues to hold around $28,000. The rising trend that gained momentum in October encountered resistance at the $28,300 level, which corresponds to a declining trend line.
Bulls made two attempts to break through the critical level. However, these attempts were thwarted by bears with strong price rejection candles. The dominant position of sellers and the ongoing profit-taking by short-term investors are blocking further upside. Another reason is the fact that rally attempts have been unsuccessful for weeks.
Moreover, the Federal Reserve’s stance will become clearer in the coming weeks. The current outlook emphasizes the possibility of further tightening, which could have fatal consequences for cryptocurrencies. Many crypto-based projects are reducing their workforce, and more are about to suffocate.
Big Moves Ahead in Cryptocurrencies
BTC, which has recovered from the $25,000 level since mid-September, climbed to $28,017 last month. However, this increase encountered a strong barrier at $28,300, which is a region where selling pressure from the aforementioned declining trend line intensified.
Depending on whether the critical resistance level, which has remained in place for 90 days, can be surpassed, an increase in volatility can be observed in cryptocurrencies. In the short term, the retracement levels could be $27,200 and $26,800, followed by $25,000.
On the other hand, despite a significant pullback that began around October 2nd, the BTC price has firmly defended the $27,230 level, causing the price to consolidate between $27,230 and $28,300. The resilience of the support despite failed tests can fuel optimism for the breakthrough of the resistance zone.
If we see a daily close above the resistance area, the rally could continue towards $30,800 and $32,000. Weekly closes above $32,000 on the chart could signal the end of the downtrend.
