Crypto Traders Urge Caution as Bitcoin Finds New Highs

6:05 pm, Wed, 25 October 23

Current Bitcoin Data

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Bitcoin broke down several resistance levels this year, marking a new YTD peak above the $35,000 level.

  • Bitcoin ($BTC) recently achieved a three-month high, reaching the $35,000 mark, with CoinMarketCap’s Fear & Greed Index indicating a current market sentiment of ‘greed’ at a score of 71.
  • While BTC’s momentum is growing, breaking several resistance levels, seasoned traders emphasize caution.
  • Alongside BTC’s surge, altcoins are also seeing gains, moving in tandem with BTC, a deviation from past trends, suggesting a potential shift in the broader cryptocurrency market landscape.

On October 25, Bitcoin ($BTC) marked a new three-month high as it reached the $35,000 level. CoinMarketCap’s Fear & Greed Index reflected the changing attitude towards the coin. As of this writing, the index indicates a market of ‘greed’ at a score of 71, a far cry from the score of 31 since September 2023.

Source: CoinMarketCap

But even if the market saw significant gains for BTC and other altcoins, seasoned crypto traders continue to remind everyone to be cautious.

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Source: CoinMarketCap

Bitcoin’s Momentum and Resistance

Data sourced from CoinMarketCap highlighted BTC’s growing momentum as its price broke down several resistance levels before finding a new YTD peak of over $35,000 this 2023  Following this series of movements, the cryptocurrency set its sights on even higher levels of resistance points. It recently broke its previous 2023 high, which stands at $31,800.

Jelle, a popular trader, remarked on the beginning of BTC’s upward trajectory, noting, “Bitcoin is back at key resistance for the third time in 6 months.” He further added a word of caution, stating, “Time to be cautious, but I don’t think you want to be bearish here just because we’re reaching resistance. The level will eventually give in — and the move will be explosive. Tick… Tock…”

Market Analysis and Predictions

Analyst Matthew Hyland posited that BTC was already on the cusp of another upward move. He observed market patterns reminiscent of those seen just before the year-to-date high.

Concurrently, Skew, another trader, pointed out the short squeezes taking place on exchanges. He mentioned, “Price testing key HTF resistance area again,” referring to high-timeframe (HTF) levels. Skew also speculated on potential fallbacks, suggesting that if the price were to retract, he’d be on the lookout for continuation signals around the $29.5K – $28.7K range.

BTC’s surge is notable but not the only cryptocurrency making waves. Research firm Santiment observed a new trend accompanying BTC’s recent gains. Altcoins, which often play second fiddle to BTC, were observed to be rising in tandem. This synchronized movement of altcoins with BTC deviates from the usual patterns observed during previous approaches to the $30,000 mark.

Jelle, commenting on this phenomenon, stated, “Altcoin positions continue to print money.” He further elaborated that while a cautious approach is always recommended, “not many people are ready for what’s going to happen in the next months.”

As BTC continues its push toward the $35,000 mark, the global financial community watches with bated breath. With approximately six hours to go until the Wall Street market opens at the time of writing, all eyes are on how this surge will impact the broader financial landscape.

Many traders view BTC’s recent surge to a three-month high above $35,000 as a testament to its resilience and dynamic nature. While seasoned traders and analysts urge caution, the momentum indicates a promising trajectory. However, as with all investments, especially in the volatile world of cryptocurrencies, it is crucial for investors to stay informed, vigilant, and prepared for any market fluctuations.

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