Bitcoin (BTC/USD) trades at $20,660 at press time, its highest level in 6 weeks. The cryptocurrency had added 7% intraday. With the gains came a 157% jump in trading volume.
Wednesday’s gains in bitcoin came as investors were seeking a reversal at $19,000. This was when BTC hit its all-time low. According to Insight data and analysts’ view, there has been a bull call.
One factor used as a bullish indicator for bitcoin is the US Dollar Index or DXY. In a session with his 278,000 YouTube followers, crypto analyst Jason Pizzino said that DXY is showing signs of exhaustion. The fatigue comes after a rally of more than 16% this year.
Pizzino says the DXY closed below 50% last week, which is a sign of bullish exhaustion. The analyst has set 109 (points) as a possible lower top for DXY. The level will be the first bottom top for DXY for a year. How would this point to a bullish market for bitcoin?
Investors view the DXY as a gauge of the overall market. When the index is weak, it suggests that investors are developing a risk-averse sentiment. As a result, they are shifting their capital from defensive dollars to riskier assets like crypto.
Bitcoin moves above moving average as price overcomes tight trading
Source – TradingView
On the daily chart, bitcoin is trading in a narrow range ahead of Wednesday’s breakout. The breakout saw the cryptocurrency break above the 20-day and 50-day moving averages, which trapped it.
The RSI reading of 65 shows that there are more buyers for the cryptocurrency. However, we are approaching the overbought level, which could start a correction.
Will bitcoin continue to move higher
The current momentum looks durable for bitcoin at the next resistance level at $21,500 and further at $22,500. However, it has to cross the immediate and higher-up resistance areas for a sustained bounce. A better crypto sentiment can do a lot to help. however, btc price At current valuations, the dip looks attractive to buyers.
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