Bitcoin (BTC) is heading for $28,000 or $19,000 and this week it could all be decided, says a fresh analysis.
In Twitter comments on February 15, the popular trader Skew told his followers that the BTC/USD pair is now in a “decisive zone.”
“We are preparing for the next big BTC move”
Despite returning above $22,000 on the back of the February 14 US Consumer Price Index (CPI) print, bitcoin has yet to resume the breakneck rally that saw it gain 40% in January.
After two weeks of consolidation, however, the time has come to make a decision, believe Skew.
“I think we are preparing for the next big BTC move,” he summed up. next to a chart showing bitcoin price targets.
Those targets come in the form of $28,000 and $19,000 on the downside. Both echo the outlook for others throughout the 2023 rally, with the area immediately below $20,000 being of particular interest.
Current spot price levels show that bitcoin is testing a “fundamental zone here in a big range,” Skew continued.
“The next few days will be important,” he added.
To the question of whether the odds favor one direction or the other, the answer was less exciting for bulls. eager to continue the journey towards USD 30,000.
A combination of US dollar strength, bond yields and stock market behavior has already set up a troubling scenario for risky assets en masse.Skew explained.
“From here and the structure of the DXY/JPYUSD, it makes sense for the USD to rise through Friday,” it reads. in another post.
“There is also a dislocation between the 2Y & ES; weakness in high beta assets today would confirm a move lower in risk assets.”
A trader warns of a “parabolic” movement of the US dollar
As Cointelegraph reported, The US Dollar Index (DXY) is on the radar of many market participants this month after seeing a bounce of its own, potentially breaking a multi-month downtrend for good.
The DXY continued to hold the ground gained in its last bullish push of the day around 103.5the TradingView data showed.
To his colleague and analyst TechDev, There are even reasons to think of a “parabolic” return of the DXY, with all the downward pressure on cryptocurrencies and risk assets that would imply.
He referred to the relationship between the dollar and Chinese bond yields.
“Interesting that this liquidity signal just put up a double bottom similar to the DXY 2 years ago, before it went parabolic,” commented in a graph February 12.
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.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
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.