Bitcoin (BTC) was down significantly from the previous day's level of 11,800 and fell below $ 11,300. The leading cryptocurrency started consolidating losses yesterday. BTC was trading at $ 10,320 at the time of writing.
The cryptocurrency market is currently lacking strong momentum in both directions. Both the bulls and the bears found themselves at a dead end, causing Bitcoin – and most of the big altcoins – to enter tight consolidation channels. The two levels to watch in the short term are $ 10,400 and $ 10,600. These indicate the upper and lower bounds of the range BTC created 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 selling in the S&P 500 and other US stock markets. Technical turnover was also a factor in the recent decline after breaking under a symmetrical triangle pattern. The BTC / USD bulls will have to defend the $ 10,200 level to encourage a rally towards the $ 10,500 resistance area.
The BTC / USD pair only rises if it trades 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 versus Bitcoin
The view divided over the past few months is that Bitcoin will be negatively impacted by the appreciation of the US dollar. Case Study: BTC When The Dollar Starts To Rise In February And March; Like the S&P 500 and the price of gold, it fell. More recently, when Bitcoin peaked in August, the U.S. dollar was in the middle of a dead cat splash.
In the past few days and weeks, however, the two markets have separated. Bitcoin was slightly stable as the US Dollar Index (DXY) saw a strong 1-2% rebound. One analyst says the ongoing separation between these two markets could be a sign that BTC is ready to go further.
The bitcoin rally could come soon
With the US dollar rising, an analyst named Crypto Amsterdam believes Bitcoin could be on the verge of a strong uptrend. The analyst shared the following table on September 22nd. This suggests that the cryptocurrency began to rise parabolically when the U.S. dollar showed its latest strength and Bitcoin didn't fall immediately.