Although the odds were in favor of an escape above USD 10,000, the sellers managed to take temporary control, and could be generating a short-term reversal of the Bitcoin price. A fall of the BTC is being witnessed, how far will it go?
Weakening dollar may boost Bitcoin price
US dollar recovering?
Before studying the price of Bitcoin, it’s important to know the full context of the situation. Therefore, we can start with the foreign exchange market.
The world’s most powerful currency has been in constant decline over the past few weeks. However, today it reached a very important demand zone, which could work as a floor for a possible price decline.
This scenario is even the least likely, as the downward force is totally in charge.
However, what we are seeing now could be the start of that reversal. Shocking both the US dollar, and possibly Bitcoin.
When performing a technical analysis of the dollar index chart, there is still no confirmation of this possible scenario. However, the odds are now in favor of this happening.
For a confirmation of this short term change in trend, it would be advisable to wait for a 4 hour candlestick close above the resistance at 96.5 points.
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Technical analysis of Bitcoin price
Without a doubt, this small respite of the US dollar is being a major trigger for the fall of the Bitcoin Method price, but it must also be added to the downward pressure that exists in the resistance zone around the USD 9,950.
Today’s candlestick will be instrumental in determining whether BTC will go near support, or instead, eliminate short-term bearish intent.
The EMA of 8 and SMA of 18, still rising, are being crossed, while the attempt to break the support at USD 9,420 occurs; if effective, the price of Bitcoin could go to visit the demand zone between USD 8,800 and USD 8,400.