As of October 5, Wednesday, BTC/USD was seen trading around $19,700. The pair proceeded to reverse previous losses, which led those who shorted early into $20 million in liquidation within a day. Notably, as of October 7, Bitcoin has been hovering around $20,000 again.
(BTC/USD one hour candle chart)
Michaël van de Poppe, CEO of the trading firm Eight, was among those who considered the Bitcoin lows a good entry point into the market. As he stated, “Correction indeed taking place in which $19.8K-$19.9K is an area to look for longs, but also a retest around $19.6K is an important one for Bitcoin.”
Well known trader ‘il Capo Of Crypto’ continued to hold onto his view of short term prospects in crypto, in the meantime. According to Capo, BTC/USD should go on rising until a firm rejection sends the market back to its recent range or below. He opined, “Some shitcoins might be the exception and have higher returns. Then I would like to see bearish signs, but yeah, that resistance should hold. We would then see a strong bearish move towards new lows.”
In relevant news, the U.S. dollar index (DXY) has been losing ground against recent highs, showing signs of weakness. This has boosted market sentiments towards riskier assets.