Bitcoin (BTC) returned to $16,500 at the open on Wall Street on Nov. 14 as the bulls tried and failed to break higher.
Snowden Hints That BTC Price Echoes March 2020
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair dipping below $17,000 on the day after a dismal weekly close.
The largest cryptocurrency has been unable to show convincing signs of recovery after losing more than 25% the previous week thanks to the debacle around the FTX exchange.
That debacle was continuing at the time of this writing, with revelations including other companies with significant exposure to the defunct exchange.
With little light at the end of the tunnel, BTC price action remained weak.
“Markets are consolidating,” summarized Michaël van de Poppe, founder and CEO of the trading platform Eight.
“I would assume we would be at $10,000 actually, after the terrible news we’ve been getting the last couple of weeks.”
The trader and analyst Rekt Capital, meanwhile, warned of the existence of support-resistance turns thanks to the weekly close, the lowest for Bitcoin in two years.
“These are the monthly BTC levels displayed on the weekly timeframe,” tweeted next to a graph of important focal levels.
“On this chart, we can see that $BTC has made a new weekly close below the monthly level of ~$17,300. Initial signs that this level is becoming a new resistance this week.”
Other posts on the day warned of the possibility of “additional wicks to the downside” in the BTC/USD pair, while noting that historically, previous bear markets were even worse in terms of the pair’s decline from cycle highs.
An interesting counterpoint came from Edward Snowden. In a tweet of his own, he pointed that he would be a buyer of BTC at current levels, a sentiment he last posted after the March 2020 COVID-19 cross-market crash.
“There’s still a lot of trouble ahead, but for the first time in a while I’m starting to feel the itch to climb again,” he said.
a second tweet emphasized that the above “was not financial advice.
The dollar offers a “perfect” path for the rise of BTC
Stocks offered little respite to crypto bulls on the day, with the S&P 500 and Nasdaq Composite Index down 0.3% and 0.8%, respectively, during the first hour.
The US Dollar Index (DXY) continued its own consolidation while refusing to add significant pullback to previous weeks.
The popular Game of Trades trading account he pointed that the DXY Relative Strength Index (RSI) on the daily chart had set a new all-time low for 2022.
“SPX is showing strength and DXY is collapsing”, wrote a hopeful Bloodgood, another well-known Twitter trader, in part of a new update of the day.
“Perfect situation to see something on the upside.”
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