Bitcoin (BTC) saw its first flight above $20,000 on October 4 as traders anticipate a familiar resistance to the ceiling gains.
1 hour BTC/USD candlestick chart (Bitstamp). Source: TradingView
The multi-week decline in the dollar is fueling the Bitcoin bulls
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD rose ahead of Wall Street’s open, up more than 5% in 24 hours.
The pair shrugged off macroeconomic concerns at the start of the week, as problems at Credit Suisse and an escalating conflict between Russia and Ukraine failed to dampen the performance.
Now, the short-term analysis has focused on the potentially near $21,000 term – as was the case late last month, when the sell-side pressure at that level remained significant.
Popular currency trader Il Capo told his Twitter followers that day: “20500-21000 is a sell zone. If the price gets there, which should be very bullish.”
Razzoorn, an analyst with international trade group The Birb Nest, noted that the current fee is Bitcoin’s fifth attempt to escape a major liquidity cloud in as many weeks.
Despite the potential limited upside opportunity, Bitcoin rallied in line with the broader wave of risk assets that saw US stocks rally 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
“The market is going up,” Michael van de Poppe, CEO and founder of trading platform Eight, continued, most optimistically:
“Delivery over $19,500 to get support. Now, if the range is high at $19,600 for Bitcoin, I think we will continue towards $22,400.”
Altcoins are trying to change the sticky trend
Across the major cryptocurrencies, Ether (ETH) and Ripple (XRP) have been leading the daily performance at the time of writing.
Related: CoinShares’ Butterfill Suggests ‘Continuous Indecision’ Among Investors
ETH/USD traded above $1,350, but continued to break out of its sideways trend in effect for several weeks since heavy losses occurred during the post-merger crash.
ETH/USD (Binance) intraday candlestick chart. Source: TradingView
On the other hand, XRP faced a more stubborn resistance range after the previous gains, rejecting the multi-week support just below $0.45.