Bitcoin (BTC) is eyeing a $28,500 price tag as it maintains its early October gains, despite some traders expressing doubt.
Data from TradingView shows strong BTC price action in the first U.S. trading session of October.
The leading cryptocurrency saw swift gains, following a relatively cool monthly candle completion which had BTC closing at $26,970.
Trader and analyst Rekt Capital noted that despite the monthly close being more than 5% below the current spot price, caution was warranted. He highlighted a potential for the bullish momentum to be invalidated if the price action became an upside wick.
Meanwhile, other market observers noted encouraging signs on exchange order books. Trader Jelle suggested, “Spot bid continues, while funding is negative. This reeks of disbelief.”
Another trader, Skew, noted the interesting disconnect between spot markets and derivatives, with the former driving the price movement post Wall Street open.
BTC’s performance coincided with the U.S. dollar hitting new local highs, following Congress’ success in avoiding a government shutdown.
Crypto analyst Nebraskan Gooner predicted that a further breakout could push the dollar index to 108, marking new 11-month highs.
Economist Mohamed El-Erian noted the dollar’s strength was not favored by the U.S. economy or the markets, yet Bitcoin seemed unfazed by these market developments.