Bitcoin BTC/USD recovers the $20,000 level, but how far can it go? – Vijay Gir

Bitcoin BTC/USD recovers the $20,000 level, but how far can it go?

  • Bitcoin has jumped above the $20 price level amid a fading momentum

  • The token remains correlated to equities, which equally saw some bullishness

  • The dollar index, which usually moves inversely to BTC, may be due for a reversal

Bitcoin BTC/USD is up 5% in the past day, the highest level in two weeks. The run-up has driven the token to reclaim the $20,000 price level. In the weekly outlook, BTC is up 6.81%, trading at $20,197 at the time of writing.

Despite the recovery, BTC has remained subdued since trading at $69k in November last year. The sell-off represents 71% loss from the ATH and 56% year-to-date. Nonetheless, a few market dynamics could be behind the positive sentiment – the state of the forex and stocks market.

Digital assets have been moving similarly to the stocks. The trend is far from the notion that cryptos have decoupled from the latter. On Tuesday, S&P 500 jumped 0.7% amid fears of a possible global economic recession. Away from stocks, forex investors are speculating on the US dollar index.

The index, which tracks the dollar against global currencies, is up 18% YTD. BTC has been moving inversely to the metric, more often than not. With the index nearing the top, analysts believe BTC could be preparing for a price pump.

Bitcoin surges amid fading momentum

eToro

eToro is one of the world’s leading multi-asset trading platforms offering some of the lowest commission and fee rates in the industry. It’s social copy trading features make it a great choice for those getting started.


Buy BTC with eToro today

Capital.com

Capital.com is a global broker which offers over 200 cryptocurrencies for its users.

It comes with a range of features such as; great security, 24/7 support, demo accounts and a wide variety of assets.

On top of that, it also has no inactivity, withdrawal or deposit fees, which makes it stand out from other crypto brands.


Buy BTC with Capital.com today

Source: TradingView

From the daily chart above, bitcoin has been ranging between $18k and $25k since June. Zooming out further, the Stochastic Oscillator is above 80 at the oversold zone. The cryptocurrency is supported by the 20-day MA but faces resistance from the 50-day MA. The next possible resistance is $21,792.

Concluding thoughts

Bitcoin has surged in the daily chart but lacks the strength to maintain the uptrend. Key indicators are currently looking bearish. A price above $21k may welcome a bullish momentum. As it is, Bitcoin may not sustain the pump unless the current sentiment changes.

Leave a Reply

Previous post Router Protocol hires ex-Polygon developer Mankena Venkatesh
Next post Pyth Network to use Auros high frequency on-chain data