Bitcoin (BTC) continued to hold key support on Dec. 2 as US stocks fell at the open on Wall Street.
DXY weakness offers hope of a “Christmas rally”
Data from Cointelegraph Markets Pro and TradingView tracked the BTC/USD pair as bulls bought time between $16,800 and $17,000.
Analysts had pointed to the former as a key level to hold, which however was in question at the time of writing as shares lost 1% early in the session.
Popular cryptocurrency analytics account Nunya Bizniz I ask if it was time to make a “decision” on the performance of the S&P 500, looking at a pattern that suggested a local spike could soon appear.
In that case, Bitcoin’s correlation with traditional risk assets, which has declined after the FTX collapse, would be tested.
Meanwhile, however, the inversely correlated US dollar gave bulls little to worry about as the US Dollar Index (DXY) hit five-month lows.
The DXY dipped to just 104.37 on the day before recovering above 105 at the open on Wall Street.
Thus, the analyst Pumpcat looked at the semi-annual closing of the graph, scheduled for the end of December.
“I think the probability of a long-term correction is high from here”, predicted.
Another popular Twitter analysis account, Cold Blooded Shiller, also gazed out the idea of a “Santa Claus rally” if macro data and Federal Reserve comments complement the performance of risky assets, to the detriment of the dollar.
“Markets are clearly at an important point – both $DXY looking to be in free fall + markets and $SPX looking to break major trend lines that have kept them capped”, added another tweet of the day
An analyst reinforces the importance of USD 19,500
With an eye on the upside potential, trader and analyst Rekt Capital kept the USD 19,500 as a ceiling for Bitcoin on monthly time frames.
The BTC/USD pair ended November down 16.2%, having broken support to trade in a new range after FTX.
“BTC lost the $19,500 level as support. But has not turned it into new resistance,” he wrote.
“Technically, $BTC could rally as high as $19,500 to make it new resistance. That would be textbook confirmation of the crash. It doesn’t have to happen, but it’s a possibility.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.
