Bitcoin (BTC) circled a key breakout level on Oct. 19 after a “FOMO liquidity grab” ended in rejection at $69,000.
BTC/USD 1-hour chart. Source: TradingView
BTC price seals best daily close in 4 months
Data from Cointelegraph Markets Pro and TradingView showed BTC price action constricting after the week’s final Wall Street trading session.
BTC/USD saw new three-month highs the day prior, coming within inches of $69,000 on Bitstamp before giving up its spontaneous gains.
“Low volume + bear divs on this breakout,” popular trader Roman told followers on X at the time.
“Still think we come back down and consolidate before moving higher. This seems like a fomo liquidity grab before the real breakout.”
BTC liquidation heatmap (screenshot). Source: CoinGlass
Data from monitoring resource CoinGlass showed thick liquidity walls building either side of spot price, with asks keeping a lid on BTC price upside.
Roman also referred to a crunch area of interest for market participants, $68,400, this corresponding to a breakout zone of significant importance since March’s all-time high.
“Everyone is watching 68.4k to break the macro range,” he concluded.
BTC/USD 1-day chart. Source: Rekt Capital/X
Continuing on the topic, fellow trader and analyst Rekt Capital acknowledged that bulls still had work to do in order to cement the zone immediately above $68,000 as solid support.
“Bitcoin is once again pressing beyond the very top of the resistance area (red),” he explained on X alongside an illustrative chart.
“Bitcoin just needs one Daily Close beyond the red resistance to position itself for a confirmed breakout from here. Daily Close is essential to confirm lack of upside wicks beyond resistance.”
The Oct. 18 daily close ultimately came in marginally above $68,400, making it Bitcoin’s highest since June 10.
Bitcoin macro bull factors line up
Turning to macroeconomic trends, trading firm QCP Capital had good news for Bitcoin bulls going forward.
Strong institutional inflows, as well as three-and-a-half-year highs in Bitcoin’s crypto market cap dominance, meant that so-called “L1 coins” should all benefit, it argued in its latest bulletin to Telegram channel subscribers.
Bitcoin dominance stood at 58.88% at the time of writing, having briefly tagged 59% on Oct. 17.
Bitcoin crypto market cap dominance 1-week chart. Source: TradingView
“With US equities close to all-time highs and the Japanese yen on a fresh weakening trend, risk-on sentiment will only grow stronger as we approach the US election,” QCP added.
“This will propel risk assets higher and support our Uptober narrative.”
BTC/USD monthly returns (screenshot). Source: CoinGlass
BTC/USD was up 7.7% month-to-date on the day, performance approximately equal to September.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
