Uptober Shows Its Strength: What’s the Next Resistance Level for Bitcoin Price?

• Bitcoin (BTC) surged above $28,000 in the early hours on Monday, with analysts citing ETF optimism and seasonality as reasons behind the gains.
• According to data, bets against rising prices had an impact of around $94 million, leading to a “short squeeze” where short sellers were forced to buy the asset to cover their positions.
• In the past 24 hours, Ether (ETH) rose above $1,700, BNB and ADA added 3%, while MATIC increased by 5.5%. Solana’s SOL tokens led significant gains, rising by 14.5%.

Bitcoin’s rapid price increase led to a short squeeze: BTC needs to overcome this resistance for further gains!

Bitcoin Needs to Break Resistance for More Upside

Bitcoin (BTC) surged above $28,000 in the early hours on Monday, marking the highest prices in over a month, with analysts attributing the gains to ETF optimism and seasonality.

Traders on the Japanese exchange Bitbank had already observed the $28,000 level for Bitcoin last week. In a previous bull market, $28,500 served as a significant support level and could potentially turn into an important resistance level in the coming weeks.

In the past 24 hours, Ether (ETH) rose above $1,700, BNB and ADA added 3%, while MATIC increased by 5.5%. Solana’s SOL tokens led significant gains, driven by renewed optimism around the network, rising by 14.5%.

The liquidation of short positions in crypto-tracked futures may have contributed to the increase in Bitcoin and Ethereum prices. Data indicates that bets against rising prices had an impact of approximately $94 million, leading to a “short squeeze” where short sellers were forced to buy the asset to cover their positions. Approximately $30,000 in short bets were liquidated, with most of the liquidation activity occurring on the crypto exchange OKX.

Liquidation refers to a situation where an exchange forcibly closes a trader’s leveraged position due to the trader being unable to meet the margin requirements or not having enough funds to keep the trade open.

Are historical events driving the gains?

Elsewhere, some traders pointed to historical seasonality as a driver of Sunday’s gains. Samer Hasn, a market analyst at XS, said, “These gains in cryptocurrencies are coming in tandem with a generally bullish sentiment specific to October,” and added:

“Bitcoin has only registered monthly losses twice in October since 2013, earning it the nickname ‘Uptober’ within the cryptocurrency community.”

Last week, participants were particularly anticipating an increase in short-term demand when finance giant VanEck officially launched an Ether (ETH) futures exchange-traded fund (ETF). Some analysts priced the likelihood of ETF approval in the first week of October at 90%.