Bitcoin (BTC) saw its first flight above $20,000 on October 4 as traders anticipate a familiar resistance for maximum gains.
BTC/USD 1-hour candlestick chart (bit stamp). Source: TradingView
Multi-week dollar lows fueling Bitcoin bulls
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rallied ahead of the Wall Street open, up more than 5% in 24 hours.
The pair had shrugged off macroeconomic concerns at the start of the week, with problems at Credit Suisse and the escalating Russian-Ukrainian conflict failing to slow performance.
Now, the short-term analysis has focused on that potentially near $21,000 target – as was the case late last month, when sell-side pressure at that level remained significant.
20500-21000 sales area. Popular crypto trader Il Capo told his Twitter followers that day, if the price gets there, it shouldn’t be too bullish.
Razzoorn, an analyst at international trade group The Birb Nest, noted that the current charge is Bitcoin’s fifth attempt to escape a large liquidity cloud in as many weeks.
Despite the potential limited upside, bitcoin rallied in line with the broader wave of risk assets that sent US stocks up significantly the previous day.
At the same time, the US dollar suffered, and the US Dollar Index (DXY) extended its losses to approach 111 points, threatening the support in place since mid-September.
US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView
Michael van de Poppe, CEO and founder of trading platform Eight, continued, “The Rise of the Market”:
“Turn over $19,500 for support. Now, if the $19,600 high range holds for bitcoin, I guess we will continue towards $22,400.”
Altcoins are trying to change the sticky trend
Across the major cryptocurrencies, Ether (ETH) and Ripple (XRP) are leading the daily performance at the time of writing.
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ETH/USD is trading above the $1,350 level, and has yet to break out of its sideways trend in effect for several weeks since entering heavy losses during post-consolidation crash.
ETH/USD (Binance) 1-Day Candlestick Chart. Source: TradingView
On the other hand, XRP faced a more stubborn resistance area after the previous gains, rebounding from the multi-week support below $0.45.