Bitcoin Reclaims $19,500 As Dollars Plummets, Will BTC See More Upside?
September 28 2022 - 3:40PM
NEWSBTC
Bitcoin has displayed some strength during today’s trading session
after re-visiting the bottom of an important trendline. The
benchmark crypto has been trading in a tight range, between $18,600
and $19,500, but the monthly close might support a spike in
volatility as bulls and bears fight for this candle. Related
Reading: 2022: The Year Extreme Fear Took Over The Crypto Market At
the time of writing, Bitcoin (BTC) trades at $19,400 with a 2%
profit in the last 24 hours and 7 days. Other cryptocurrencies seem
to be the following Bitcoin as they record small profits on low
timeframes. The benchmark crypto might be preparing for further
gains. Bitcoin Sets The Stage For More Profits? In addition to the
monthly close, Bitcoin’s recent price action seems to be supported
by a crash in the U.S. Dollar. The currency was able to reach
levels last seen in the early 2000s, as it touched 115 on the DXY
Index, but it was rejected from these levels. At the time of
writing, the DXY Index trades at 112 and might return to its early
September lows much southern. The DXY Index’s rally has been one of
the main obstacles capping the upside in Bitcoin and other risk-on
assets, such as equities. In that sense, a revisit of the September
lows might allow the crypto market to extend its current bullish
price action over the coming weeks. According to analyst Justin
Bennett, the DXY Index price action might support a Bitcoin rally
back to $26,000. The cryptocurrency might reach this level before
the next U.S. Federal Reserve Federal Open Market Committee (FOMC)
meeting. As seen in the chart below, Bennett claims that Bitcoin
has been trading in a channel with a bottom at around $18,700 and a
top at $27,000. With U.S. dollars trading to the downside, Bitcoin
might be able to reclaim the high of this channel. The analyst
wrote: “As long as $18,700 holds, this is my Bitcoin playbook
through October”. Bitcoin On A Lighter “Bear Market”? Additional
data from a pseudonym analyst indicates that Bitcoin might be in a
lighter downside price action. The analyst looked into BTC’s price
previous drawdown from its all-time highs (ATH) and discovered that
the cryptocurrency is only 74% from those levels. In the 2013 and
2017 bear markets, Bitcoin crashed 84% from its previous all-time
high and in 2011, 93%. This could suggest BTC bear market is
getting weaker or that the cryptocurrency might see another leg
down. Related Reading: Chainlink Price Struggles To Break Above,
Can Price Hit 10? In addition, the analyst discovered that Bitcoin
has spent 316 days away from its all-time high. In previous years,
the cryptocurrency is able to find a bottom on an average of 312
days after crashing from its ATH. In that sense, the analyst
concluded: The duration of 316 days in current bearmarket so far is
between 2011 and 2013 + 2017. Either, we bottom soon-ish or this
time is different. The average duration from top-to-bottom is very
interesting as well. The average is 312 days, which is where
#Bitcoin is right now.
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