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Bitcoin Price: Here's Why $28,000 Level Is Crucial

source-logo  u.today 17 October 2023 16:37, UTC

Bitcoin's recent volatility has brought significant attention to the $28,000 price point, drawing analysts and traders to closely monitor this make-it-or-break-it threshold.

Glassnode cofounder Yann Allemann detailed its importance in a recent post on the X social media platform. The analyst emphasized its significance in understanding market dynamics and investor sentiment.

Why $28,000 matters

After recent fake news publications, Bitcoin experienced a swift increase, particularly on the Binance BTC/USDT market.

This trading platform, accounting for about 8% of Bitcoin's 24-hour volume, witnessed a cryptocurrency surge from $27,880 to $30,000, marking a 7% jump in merely 30 minutes.

The $28,000 benchmark is not just a figure — it acts as a critical milestone, according to the Glassnode cofounder. The entire cryptocurrency market is influenced by Bitcoin's capability to surpass and consistently uphold a value above this threshold.

Earlier, the cryptocurrency reached this pivotal milestone in futures trading, but the spot market price topped the $27,980 level. The importance of this level reflects broader market dynamics and investor sentiment.

Momentary rally

A sudden spike in Bitcoin's price can be traced back to an inaccurate report shared on social media platform X. The misinformation, published by crypto news outlet Cointelegraph, claimed that the Securities and Exchange Commission (SEC) had approved BlackRock's iShares application for a spot Bitcoin ETF.

This caused Bitcoin prices to momentarily surge by over 10% before retracting a majority of those gains. However, BlackRock denied the report, and Cointelegraph soon addressed the error.

For now, Bitcoin continues to hold above the $28,000 level despite the ETF debacle.