dark horizon for bitcoin

dark horizon for bitcoin

Bitcoin (BTC) volatility increased slightly on September 26. On the Wall Street side, however, we tried to avoid big losses at the opening.

1-hour candlestick chart of the BTC/USD pair (Bitstamp). Source: Trade View

The monthly close could shake the price of BTC

Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair was around $19,000 on the day, with hourly candles of 1.5% to 2% uncommon.

The pair was expected to break out of its narrow short-term trading range, having consolidated since September 22nd.

For Michaël van de Poppe, the founder and CEO of the trading company Eight, if we manage to cross the zone above the current price range, it should indicate that the rise continues.

“The theory is still valid for bitcoin,” he said. declared that day to his Twitter followers.

“The critical zone is at $18,600 as support, which we have tested many times. Another test of the 19,400-19,500 area (which we will do soon), is likely to give a breakout to the upside. I’m aiming for $20,000 and $22,500.”

The Resource Content Indicators on chain analysis confirmed that volatility had returned.

“BTC is trading in a tight range. Volatility will increase as the week progresses towards the monthly close, which expires with monthly and quarterly options,” he said. writing in a Twitter thread on the current state of the market.

“If the bulls can handle a close M green above $20,000, the major MAs have technical resistance. »

Looking at a longer-term range, meanwhile, fellow trader and analyst Josh Rager suggested that an optimistic scenario could see the BTC/USD pair grow from the first half of 2019.

“It’s very uncertain whether a bottom has been set for bitcoin, but if the price of BTC starts to make its way towards $24,000 and above, I will definitely be watching,” he said. tweeted.

“I’m not saying that history will repeat itself, but April 19 surprised people the most.”

Rager acknowledged that the macroeconomic environment this year was “different” from 2019.

BTC/USD monthly returns chart (screenshot). Source: Coinglass

Resulting in a record year of dollar strength

On the macro subject, US equities stabilized at the opening of September 26 Wall Street, helping the highly correlated cryptocurrency to avoid downside volatility.

Also read: The bond market bubble has burst – 5 things to know about bitcoin this week

The S&P 500 and the Nasdaq composite index fell 0.35% and 0.65% respectively on the day.

However, the US Dollar Index (DXY) looked set to attack its recent 20-year highs, retreating modestly after hitting 114.52 – its highest level since May this year.

The year 2022 was the anniversary best year ever of the DXY, which is now up more than 18% since January 1st.

“The 52-week percentage change (lower limit) is +21.3%, the highest rate of change since Q2 2015,” it said Note Caleb Franzen, Principal Market Analyst at Cubic Analytics, as part of the tweet of the day.

US Dollar Index (DXY) 1 month candle chart. Source: Trade View

“The trend will stabilize & the RoC will normalize, but that does not require a decline in DXY. »

The views and opinions expressed herein are solely those of the author and do not necessarily reflect those of All investment and trading involves risk, you should do your own research before making a decision.

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