Impulsive rebound on major $ 40,000 support
After a corrective and volatile September for Bitcoin (BTC) against a backdrop of a combination of fundamental concern themes, the market rebounded impulsively on Thursday, September 30, to the $ 40,000 support.
On a technical level, this is an indication that the summer rise is the dominant technical factor, September with a simple retracement and October with the entry into a third wave of increases.
Elliott’s wave analysis, the classical chartist approach, the Ichimoku system, etc. So many technical tools that have given bullish signals since September 30, confirming in passing the role of chartist border of $ 40,000 as explained in my previous article.
It should be noted that the rise is focused on BTC, there are indeed strong technical bullish signals on the dominance of Bitcoin which should tend towards the 50% threshold during the month of October.
Bitcoin broke above $ 50,000 / $ 53,000, a very strong area of technical resistance resulting from the fall last spring. It is now necessary to confirm that this zone has changed status, it must demonstrate its role of support.
On the side of missing confirmations, major altcoins like Ether and BNB must in turn overcome major resistances. Which is not yet the case at the time of this writing.
Bitcoin Dominance Chart – Source: TradingView
A rise in bitcoin driven by institutions?
Who has carried the rise in Bitcoin since the beginning of October: retail traders or institutional traders? Within the current stock market themes, that of the acceleration of inflation of energy commodities is emerging as a risk.
High finance is looking for instruments to hedge against this risk and Bitcoin futures contracts can be one solution among others.
In any case, the exposure of pro traders to Bitcoin futures contracts has increased significantly over the past week, as illustrated by the rise in Open Interest on all dedicated platforms.
The technical issue now is to stay above $ 50,000 at the end of the week during the weekly technical close.
If you want to go further, I make a Bitcoin analysis video every morning within Cryptoast’s private group, the “Daily Bitcoin Briefing”. Here is the one from this Thursday, October 7.
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About the author: Vincent Ganne
Vincent Ganne is at the same time a manager at TradingView, a market strategist, a technical analyst, a trainer on the stock market and a speaker on BFM Business. With a long experience in the field of analysis, he offers a global approach to financial markets. From a macroeconomic point of view, as well as from a microeconomic point of view. Vincent Ganne also uses many aspects of graphical analysis with the aim of forecasting trends in financial assets over the medium and long term.
All articles by Vincent Ganne.