Bitcoin (BTC) held $20,000 until Oct. 5, with traders’ targets still including a fresh high before a possible pullback.
$21,000 upside target would end at new lows
Data from Cointelegraph Markets Pro and TradingView showed that the BTC/USD pair hit the $20,470 level on Bitstamp overnight before turning lower again.
The pair managed to hold the old all-time high from 2017 as support, something that on-chain analysis resource Material Indicators hoped would endure as a positive sign.
“BTC remains in a congested range”, summarized in comments the day before:
“The pullback to technical resistance level at the 50-day MA was rejected. Now I want to see a retest of support at the 2017 top. The bulls may be losing momentum, but they placed a buy wall at $20K to hold the price “.
Material Indicators was analyzing a chart of the Binance order book of the BTC/USD pair that showed the behavior of investors with transactions of different sizes.
He was referring to its 50-day moving average (MA), that the $20,170 level had yet to break out into decisive support on the day.
Popular trader Il Capo of Crypto, meanwhile, continued with an existing thesis that involved a trip to the $21,000 mark before a steeper and longer-lasting decline.
“The local maximum is not there yet, but it is very, very close,” said to his followers on Twitter:
“$20,500-21,000 untouched and no ltf distribution. Expecting last leg up shortly. So ltf bearish signals, and reversal to new lows ($14,000-16,000).”
Signs of the end of the streak for the US dollar
As for the US Dollar Index (DXY), a key macroeconomic driver for crypto markets, some relief was on the horizon.
A new 20-year high was yet to come, according to Il Capo of Crypto, but this would be followed by a longer term break of the “parabola” in force on the strength of the dollar since 2021.
“We could see a deeper push into the box giving the BTC/SPX pair more time to rise,” explained fellow Mayne in an attached thread, also mentioning the S&P 500.
“If this zone fails, we could see a break in the dollar’s parabolic rise and perhaps a much longer sustained rally.”
DXY hovered around 110.6 points at press time, having narrowly held 110 as support, still marking its lowest levels since September 21st.
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