Bitcoin price sets October high with $20K in reach as US stocks rally

Bitcoin (BTC) rose to new October highs at the October 3 Wall Street open as Credit Suisse concerns rose.

BTC/USD 1 Hour Candlestick Chart (Bitstamp). Source: TradingView

Traders approach the rank BTC

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD targeting $19,500 after a smooth start to the month.

The biggest cryptocurrency reacted positively to weaker-than-expected U.S. manufacturing data, while in Europe, market jitters over Credit Suisse picked up pace despite assurances from executives.

“We’re starting October trading in the same congested area we ended September,” analysis resource on the Material Indicators chain he wrote in one of the several updates of the day.

“The 21 DMA acts as a ceiling on the BTC price, but we expect it to be retested soon. I need it to do so for any attempt to recapture the 20s.”

Material Indicators referred to Bitcoin’s 21-day moving average (MA) around $19,400, which could now reach a resistance/support change.

BTC/USD (Bitstamp) 1-day candlestick chart with 21MA. Source: TradingView

One more post revealed a proprietary trading indicator flashing “long” on daily time frames, raising hopes that touches could tackle the $20,000 mark.

However, analyzing the behavior of derivatives traders, William Clemente, co-founder of digital asset research and trading firm Reflexivity Research, warned that long positions were too eager to confirm a trend change.

“Important to monitor the BTC derivatives market. At the moment, longings have accumulated at every price increase,” he said explained.

“This is not what we want to see for a full trend reversal (similar to late July 2021). We want to see participants conditioned to ‘fade’ rallies.”

Meanwhile, data from the order book of Binance, the largest exchange by volume shown BTC/USD is trading in a tight range, bounded by sellers at $19,500 and bid interest around $19,150.

Below that, support was $18,800 at the time of writing.

BTC/USD order book data chart (Binance). Source: Material Indicators/Twitter

US stocks offset losses as dollar cools

On the macro front, below-expected US Purchasing Managers’ Index (PMI) data pressured bond yields.

Related: BTC Price Still Not at ‘Peak Pain’ – 5 Things to Know in Bitcoin This Week

At the same time, oil and silver in particular gained, while in equity markets, the S&P 500 and the Nasdaq Composite Index were up 1.8% and 1.3%, respectively .

“More PMI data, unemployment and job offers will come next week. The turn of the markets? It seems so,” Michaël van de Poppe, CEO and co-founder of trading firm Eight, answered as part of market feedback.

They go from Poppe to more described Bitcoin’s current trading range is ‘ultra dull’ as the crypto is expected to copy silver’s performance.

The US Dollar Index (DXY), a classic crypto headwind, fell below 112 points on the day.

1-day candlestick chart of US Dollar Index (DXY). Source: TradingView

The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Every investment and business move involves risk, you should do your own research when making a decision.