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Bitcoin (BTC) surpassing $28,000 suggests a positive market outlook, but maintaining this level consistently is crucial, according to analysis.
In a post on X dated Oct. 17, Yann Allemann and Jan Happel, co-founders of the on-chain analytics company Glassnode, characterized the $28,000 threshold as a “critical milestone” for the price of BTC.
Glassnode: "Monitor the $28,000 level"
Following a period of sharp volatility that saw Bitcoin reach $30,000 for the first time since August, the leading cryptocurrency has managed to retain some of its gains.
As of this writing, BTC/USD is hovering around $28,500, according to data from Cointelegraph Markets Pro and TradingView — reflecting an increase of approximately 6% since the start of the week.
For Allemann and Happel, the market is currently at a significant juncture.
“The crypto market is dependent on BTC’s capacity to break through and consistently hold a value above $28k,” part of their analysis indicated.
The $28,000 level has become a battleground since Bitcoin first surpassed it in early 2021, with liquidity typically surrounding it as bulls and bears vie for dominance over the long-term trend.
Data from trading platform DecenTrader and others confirms that the situation remains unchanged despite recent fluctuations in BTC prices — $28,000 is situated in a zone between significant long and short positions of varying leverage.
Bitcoin liquidity data. Source: DecenTrader
“While this significant milestone was briefly reached in futures, the spot market price peaked at $27.98k earlier today. It’s clear how vital this price point is in the broader context,” Allemann and Happel remarked.
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“The swift movements and these price levels aren’t merely figures. They represent investor sentiment and market dynamics. Monitor the 28k level closely.”
BTC/USD 1-day chart. Source: TradingView
Debate on Bitcoin halving trajectory
As reported by Cointelegraph, forecasts regarding Bitcoin’s future both prior to and following its next block subsidy halving in April 2024 vary significantly.
Related: Mining BTC is harder than ever — 5 things to know in Bitcoin this week
In a discussion last month, DecenTrader co-founder Filbfilb anticipated BTC price gaining momentum in Q4, potentially reaching $46,000 by the time of the halving.
However, some prominent market figures remain cautious. Among them, well-known trader Crypto Tony and others are predicting a return to $20,000 before the halving, marking a final local bottom.
“Many may claim they are long right now and have capitalized on that movement, but if you’re not taking profits here at resistance, you’re making a mistake,” he conveyed to his X followers regarding the recent increase.
“Personally, I will not take a long position unless we convert that $28,500 level into support.”
BTC/USD annotated chart. Source: Crypto Tony/X
This article does not provide investment advice or recommendations. Every investment and trading action carries risk, and readers should perform their own research before making decisions.
