Bitcoin price focuses on $55K as bulls ignore a surging US dollar

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Bitcoin (BTC) challenged ranges inside 10% of all-time highs on March 10 as energy within the U.S. greenback didn’t dent the bullish pattern.

BTC/USD 1-hour candle chart (Bitstamp). Supply: Tradingview

$56,000 resistance is subsequent BTC value hurdle

Knowledge from Cointelegraph Markets and Tradingview tracked a comeback from an in a single day correction for BTC/USD on Wednesday, with the pair focusing on $55,000.

After hitting two-week highs of $54,500 yesterday, Bitcoin improved on its efficiency to hit $55,700 earlier than encountering a powerful band of resistance and heading decrease.

The newest resurgence underscores new-found energy within the largest cryptocurrency this month, one thing which continues to take it to inside putting distance of historic all-time highs at $58,300.

“Lovely rejection on the $56,000 space for #Bitcoin right here. Thus far, all the things positive,” Cointelegraph Markets analyst Michaël van de Poppe commented concerning the previous 24 hours’ motion on Twitter.

“If the $52,000 space holds, we will see additional sideways motion and renewed exams of $56,000. Nonetheless, as soon as once more, $52,000 is important to carry to keep away from additional downwards strikes.”

On the time of writing, there was little indication {that a} retest of $52,000 was imminent, as hodlers celebrated but extra institutional buyers coming into the Bitcoin adoption race. This time, it was American Residential Guarantee which teamed up with trade Gemini to take a position.

“And one other firm has determined to place bitcoin on its stability sheet,” Gemini co-founder Tyler Winklevoss responded.

Orderbook data from Binance, the most important trade by quantity, confirmed sellers lined up $56,000 and upwards, with robust assist obtainable under $49,000.

BTC/USD assist and resistance ranges (Binance). Supply: Materials Indicators/ Twitter

DXY development spares Bitcoin recent draw back

Elsewhere, March has continued to provide an fascinating countertrend for Bitcoin merchants, with the U.S. greenback flipping to a correlated asset from an inversely correlated one. 

As Cointelegraph often reports, the U.S. greenback foreign money index (DXY) tends to spark downward strain on Bitcoin when it strengthens quickly, with the reverse additionally true. Whereas this was a key characteristic of the market panorama all through 2020, this 12 months has seen the phenomenon’s energy start to erode.

Over the previous two weeks, each DXY and BTC/USD have gained in tandem.

BTC/USD vs. DXY 4-hour chart. Supply: Tradingview