Bitcoin (BTC) had dropped significantly from the 11,800 levels the previous day, falling below $ 11,300. The leading cryptocurrency began consolidating losses yesterday. BTC was trading at $ 10,320 at the time of writing.
The cryptocurrency market currently lacks strong momentum in either direction. Both the bulls and the bears were in an impasse, which resulted in Bitcoin – and most major altcoins – entering tight consolidation channels. The two short-term levels to watch closely are $ 10,400 and $ 10,600. These point to the upper and lower limits of the range created by BTC after being rejected at highs of $ 11,200. The next place of all market trends may depend on which of these levels breaks first.
According to analyst OctaFX, Bitcoin hit a new weekly trading low after a day of intense technical sales in the S&P 500 and other US stock markets. Technical sales have also been a factor in the recent decline, following the break below a symmetrical triangle pattern. The BTC / USD bulls must defend the $ 10,200 level to encourage a rally towards the $ 10,500 resistance area.
The BTC / USD pair is only rising while trading above the $ 10,500 level, with the key resistance at $ 11,100 and $ 11,400. If the BTC / USD pair trades below the $ 10,500 level, sellers can test the $ 10,200 and $ 9,600 levels.
Dollar vs Bitcoin
The common view shared in recent months is that Bitcoin is negatively affected by the increase in the value of the US dollar. Case study: BTC when the dollar starts to rise in February and March; Like the S&P 500 and the gold price, it fell. More recently, when Bitcoin peaked in August, the US dollar was in the midst of a dead cat splash.
However, in recent days and weeks, the two markets have started to disconnect. Bitcoin was slightly stable as the US Dollar Index (DXY) posted a strong 1-2% bounce. An analyst says the ongoing disconnection between these two markets could be a sign that BTC is ready to go further.
Bitcoin Rally May Come Soon
As the US dollar rises, an analyst named Crypto Amsterdam thinks Bitcoin could be on the brink of a strong uptrend. The analyst shared the table below on September 22nd. This indicates that the cryptocurrency began to rise parabolically when the US dollar showed its latest strength and Bitcoin did not immediately decline.