James Atkins
Editor
Editor
Bitcoin (BTC/USD) is currently being traded at $20,660 per coin, the highest it has been in 6 weeks. In the past day alone, it has gained 7%. Not only this, but trading volume has also increased by 157%.
On Wednesday, Bitcoin rallied when investors were hoping for a reversal at $19,000. That was after BTC had bottomed out at that level. There have been calls for a bull market by analysts looking at data and insights.
A bullish indicator for Bitcoin, according to some experts, is the US dollar index or DXY. Jason Pizzino, a crypto analyst with 278,000 YouTube followers says in a session that. DXY looks like it’s running out of energy after rallying more than 16% this year.
Pizzino believes that DXY closed below the 50%-mark last week points, to bullish exhaustion and has marked 109 (points) as a probable lower top. This would be the first lower top for DXY in a year, which Pizzino sees as potentially good news for Bitcoin markets.
Investors often use the DXY index to gauge general market conditions. When the index weakens, it suggests that investors are becoming more risk-averse. And are moving their capital from safe assets like the US dollar into risky assets like cryptocurrency.
Data Source: Tradingview
Bitcoin’s trading patterns have shown difficulty moving past certain points before Wednesday when it suddenly made a large jump. The cryptocurrency has been struggling to break past the 20-day and 50-day MA, but finally managed to on Wednesday.
An RSI reading of 65 means that there are plenty more buyers than sellers in the market. Even so, we’re getting close to the overbought level, which might bring a dip soon.
It seems likely that Bitcoin’s value will continue to increase until it reaches the next resistance at $21,500 and then $22,500.
Although BTC’s price currently looks appealing to buyers looking for a bargain, it must first surmount some major resistance levels. An improved crypto market sentiment could go a long way in helping this happen.
On the flip side, Bitcoin may encounter a correction if it fails to break above these resistance levels. In such an event, Bitcoin could fall back to $18,800 or even lower at $17,000 support.
But overall, Bitcoin’s fundamentals are strong and its adoption continues to grow.
This should bode well for Bitcoin’s long-term prospects and propel it to new heights in the future.
Investors should keep an eye on Bitcoin’s market movements and watch for buying opportunities.
It may also be wise to diversify investments by holding a mix of Bitcoin and altcoins, as well as traditional assets. As always, do your research and invest responsibly. Happy Bitcoin-ing!
Meanwhile, what do you think about the Bitcoin present rally? Please hit the comment section and tell us what you think!
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I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
