Bitcoin course can strengthen, new losses are not yet off the table
Bitcoin (BTC) successfully defended the $20,000 mark today, October 5, even setting a new interim high.
Will the rebound come after the upswing?
Accordingly, data from Cointelegraph Markets Pro and TradingView show that Bitcoin price hit a temporary high of $20,470 on Tuesday night before turning lower again.
The market-leading cryptocurrency thus initially secures the important USD 20,000 mark, which also represents the long-standing record high of 2017. The analysts from Material Indicators therefore see the successful defense as a positive sign.
“BTC is still in a competitive price range,” as the experts said the day before meant:
“The test of resistance at the 50-day MA was unsuccessful. Now there will be a retest of the record high set in 2017. While the bulls may lose their tailwind now, they have established nice support at $20,000.”
In this regard, Material Indicators point to a price chart of Bitcoin order books on Binance, which they use to infer investor behavior.
They caution that the 50-day moving average (MA) at $20,170 has yet to finally convert to the new support.
Trader Il Capo of Crypto, meanwhile, reiterated his forecast of a rally to $21,000 before a sharp decline.
“In my opinion, we haven’t reached the local high yet, but we’re very, very close,” said the expert on Twitter. To the adds er an:
“We haven’t made $20,500-$21,000 yet, but I expect we’ll be there soon. After that it goes back down to $14,000 – $16,000.”
Is the USD’s rally really coming to an end?
The US dollar index (DXY), which now serves as an important counter-indicator for the crypto market, meanwhile is slightly up again.
The Chief of Crypto assumesthat the US dollar can initially climb to a twenty-year high before a longer downward trend follows that finally ends the protracted soaring since 2021.
“We may see more losses giving Bitcoin and stocks more time to make gains,” trader Mayne said forecast.
“If this area collapses, the US dollar’s run and even longer uptrend could come to an end.”
The DXY is currently moving around 110.6 points, which means that the support at 110 points is just about defended. Nonetheless, this is the dollar’s lowest level since September 21st.