Will Cryptocurrencies Rise? Current Support and Resistance Levels for Bitcoin - COINTURK NEWS
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Will Cryptocurrencies Rise? Current Support and Resistance Levels for Bitcoin

1:03 am (59 days ago)
October 7, 2023

The price of Bitcoin is currently just below $28,000. This level has been tested multiple times this week. Current data indicates that the market may continue to rise with BTC support. However, the upcoming week will be highly volatile in the macro landscape. We will discuss the roadmap of cryptocurrencies with current expectations and predictions.

Will Cryptocurrencies Rise?

The price of Bitcoin is at $28,000, and investors are extremely frustrated with the narrow range and boring movements. Despite the increase in DXY and negative data in the macro landscape, the price maintaining the $27,000 threshold gives hope.

The critical resistance zone is at $28,143, and it will be crucial for BTC to convert this level into support for future movements. On the other hand, short-term BTC investors seem to believe in the rise this time. Short-term investors represent addresses that have bought BTC in the past 155 days and are currently holding it. The reaction of this group to price movements tends to increase momentum.

Short-Term BTC Investors

CryptoQuant analyst Tarekonchain evaluated BTC’s Realized Price – UTXO Age Bands. This metric includes a model of coin distribution among STHs when BTC’s price reaches the level they bought their coins.

Current data shows that short-term investors are currently in profit but are avoiding selling. Waiting for the STH group to be in profit is considered a bullish signal for the price.

“So far, there has been no significant Bitcoin outflow from these groups. This lack of activity indicates that these investors are holding their positions and avoiding mass sell-offs. If they do not start moving their assets to exchanges, the increase in Bitcoin price may continue.”

The RSI is approaching the overbought zone on the 4-hour chart and is slightly above the neutral zone on the daily chart. However, the weakness in volumes prevents us from experiencing a rapid rise similar to the one at the beginning of 2023. During those days, we saw billions of dollars worth of spot purchases within hours. Now, the price is shaped more by demand on the futures side.

Next week, the upcoming inflation data may support the selling trend of short-term investors. Concerns about a significant recovery in headline inflation are raised due to the increase in fuel prices over the past month.

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