Bitcoin (BTC) broke above $20,000 for the first time on Oct. 4, as traders expected known resistance to limit gains.
Multi-Week Lows in the Dollar Fuel Bitcoin Bulls
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair rising ahead of the Wall Street open, rising more than 5% in 24 hours.
The pair had brushed off macroeconomic concerns earlier in the week, with Credit Suisse woes and the escalation of the Russia-Ukraine conflict failing to dampen performance.
Now, short-term analysis turned to a run that could top out near $21,000, as it did late last month, as seller pressure at that level remained significant.
“$20,500-$21,000 is a sell zone. If price gets there, which it should, don’t be too bullish,” said popular trader Il Capo of Crypto to his Twitter followers that day.
Razzoorn, an analyst at the international trading group The Birb Nest, he pointed that the current charge was Bitcoin’s fifth attempt to escape a large cloud of liquidity in several weeks.
Despite potentially limited opportunity to rise, Bitcoin rose in line with a broader tide of risk assets that saw US stocks finish remarkably higher the day before.
At the same time, the US dollar suffered, with the US Dollar Index (DXY) extending losses to close to 111 points and threatening support that has been in place since mid-September.
“The market is going up,” continued a more optimistic Michaël van de Poppe, CEO and founder of the Eight trading platform:
“Take $19,500 as support. Now if the top of the range at $19,600 holds for Bitcoin, I guess we will continue towards $22,400.”
Altcoins try to change the trend
Among the major altcoins, it was Ether (ETH) and Ripple (XRP) that led the daily performance at the time of writing.
The ETH/USD pair traded above $1,350, still not breaking out of its current flat trend for several weeks since significant losses occurred during the post-Merge breakout.
XRP, on the other hand, faced a tougher resistance band after previous gains, bouncing off multi-week support just below $0.45.
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