Bitcoin (BTC) headed towards $24,000 at the Wall Street open on Feb. 27, as a strong weekly close translated into more gains.
Bitcoin Gains $1,000 Off Weekend Lows
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair rallied in line with US equity futures.
The pair had hit lows of $22,770 on Bitstamp over the weekend, but they didn’t last long as the weekly candle closed above $23,500.
With stocks picking up steam in the new week, hopes were high that Bitcoin could continue its upward trajectory to end February on a high.
“Declining at the crucial $23,800 level would indicate another test of support.”, wrote Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, in part of a Twitter update that day.
“If that sweep happens and we rally, the test of $25,000 is inevitable and longs are triggered.”
Popular Crypto trader Tony held similar views, but was still erring on the more cautious side when it came to the durability of the overall uptrend.
“I’m going to be long if we recapture the $23,750 level and stay above, or I’ll look short if we miss the $22,900 level and stay below”, said to Twitter followers.
The Decentrader trading suite also argued that stronger signals were needed before going long on BTC.
“People kept craving Bitcoin as it fell and now the Long/Short ratio is starting to drop, the price is starting to pick up a bit”, commented.
“Still very high at 1.8, would like to see more of it loosen up, before a rally can really get going.”
The dollar reverses its previous strength
As of press time, US exchanges continued to make up ground lost the previous week, with the S&P 500 and Nasdaq Composite Index rising 1% and 1.2%, respectively.
For its part, the US dollar index (DXY) suffered, falling below the 105 mark, in a boost to risk assets in general.
“So far, we have a potential counterfeit above this rising wedge,” popular trader Justin Bennett wrote in part of his latest update dedicated to the index.
“Things are about to get interesting.”
Meanwhile, popular analyst CryptoCon highlighted changes in the correlation dynamics between DXY and BTC.
The #Bitcoin Bull Market is now in full effect according to the DXY correlation coefficient
High correlation after a bear market negative correlation has been the start to every Bull Market
2/3 times this was the precursor to rally, what do you think will happen this time? pic.twitter.com/z516j35BDg
— CryptoCon (@CryptoCon_) February 27, 2023
Bitcoin Bull Market Is Now In Full Effect According To The DXY Correlation Coefficient
High correlation after negative bear market correlation has been the beginning of every bull market.
2/3 times this was the precursor to the rally, what do you think will happen this time?
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