Bitcoin is ready to cross the level of 28500

10 October 2023 167
Bitcoin is ready to cross the level of 28500

After a sharp rise in the first days of October, Bitcoin quotes went to a corrective pullback. Nevertheless, the upward line from the lows of September and the support level of 27 000 are held by the buyers of the main cryptocurrency.

Yesterday, speeches delivered by a number of representatives of the Federal Reserve System supported risk assets. The U.S. regulator’s officials drew attention to the strong growth of government bond yields. Thus, 10-year Treasury yields have increased from 4.4% to 4.8% since the meeting on September 20. Credit conditions in the financial market have tightened even without another increase in the key rate of the Fed.

Vice-chairman of the U.S. regulator, Philip Jefferson, and head of the Federal Reserve Bank of Dallas, Lori Logan, softened their rhetoric while commenting on these observations. According to their point of view, bond market participants have already worsened credit conditions enough, so there is no need for the Fed to tighten monetary policy. If the minutes of the regulator's September meeting, which are to be published tomorrow, reflect similar sentiments among a wide range of Fed members, Bitcoin and other risky assets will get a significant boost to growth.

At the same time, Bitcoin continues increasing its share on the cryptocurrency market. From the beginning of the year to the current moment, Bitcoin's share has increased from 38% to 48% which is maximum since the end of 2021. The advantage of the main cryptocurrency compared to competitors is also evident in the dynamics of quotes: since the beginning of Q4, bitcoin has risen in price by 2%, while ether has fallen by 6%. Bitcoin is becoming more popular as a mean of diversifying an investment portfolio.

On the daily bitcoin chart, the RSI indicator is gradually approaching the overbought zone, but there are no clear signs of a downward reversal yet. A new wave of price growth may start after touching the uptrend line. The target will be the mark 28500, it remains relevant as long as the quotes stay above the level of 27000.


The following trading strategy may be offered:


Buy BTCUSD at the current price. Take profit – 28500. Stop loss – 27000.


Also, traders can use a Trailing Stop instead of a fixed Stop loss at their discretion.

This content is for informational purposes only and is not intended to be investing advice.

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