Bitcoin (BTC) remained high on October 2 after a “big” break in market sentiment.
1-hour candlestick chart BTC / USD (Bitstamp). Source: TradingView
Trader expects a low BTC price of $ 45,000
Cointelegraph Markets Pro and TradingView data followed a strange decline in the BTC / USD pair after a sudden bullish turn on October 1, which yielded $ 3,000 in one hour.
The classic “short squeeze” has not resulted in a major withdrawal over the weekend, as bitcoin has remained above levels since the end of August.
For Cointelegraph contributor Michael van de Poppe, the question now was what form the consolidation period could take in the coming days.
“If we want to take any corrective action at all, I do not think you want it to fall that low,” he warned in the October 1 YouTube update.
“I think the deepest thing you want to see is around $ 45,000.”
However, Van de Poppe added that he prefers a bullish continuation as a result of a short-term price movement, rather than a deeper decline towards levels since the beginning of the week.
Meanwhile, a look at the buying and selling levels on the Binance main platform shows increasing resistance from $ 48,000.
BTC / USD Buy / Sell Levels (Binance) October 2 Source: Material Indicators.
“Extreme fear precedes economic opportunities”
A trader and analyst at Rekt Capital was equally optimistic and noted that BTC / USD has reached higher lows in four months, all of which have received strong support from buyers despite the fact that prices rose each time.
On the topic: “Say hello to Uptober” – the price of bitcoins increased by more than $ 47,000 in a few minutes, eliminating $ 270 million in sales
Referring to the sentiment indicator for the Crypto Fear & Greed indicator, he indicated that the fear as a whole left the market again thanks to the price action on 1 October.
He summed up: “After yesterday’s brilliant BTC hack … investors are no longer afraid of Bitcoin.”
“Extreme fear precedes economic opportunities.”
The fear and greed index was in the “extreme fear” zone already on September 30, after rising since the rise from 20/100 to the current level of 54/100, which is called “neutral” feeling.