Bitcoin (BTC) held $20,000 until October 5 with traders’ targets still including a fresh high before rejection.
1 hour BTC/USD candlestick chart (Bitstamp). Source: TradingView
$21,000 is a bullish target to move forward to new lows
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD hit $20,470 on Bitstamp overnight before turning lower.
The pair managed to maintain its all-time high in 2017 as support, which the chain analytics resource material indicators were hoping to continue as a positive sign.
“BTC is still in congested territory,” he summed up in the comments the day before:
“Retest of 50-day EMA technical resistance rejected. Now I want to see a retest of support at the 2017 high. Bulls may lose momentum but they put in a buy wall at $20K to keep the price higher.”
Material Indicators analyzed the chart of the Binance BTC/USD order book showing investor behavior that includes transactions of different volumes.
He pointed to the 50-day moving average (MA), which at $20.170 did not turn into a critical support on the day.
BTC/USD 1 day candlestick chart (bit stamp) with 50MA. Source: TradingView
Meanwhile, popular cryptocurrency trader Il Capo continued his current thesis of a trip to $21,000 before a sharper and more sustainable drop occurred.
“The Local Summit is not there yet but it is very close,” he told Twitter followers.
“20500-21000 not touched and no ltf distribution. We expect last leg soon. So ltf sign bearish, reversal to new lows (14k-16k).”
Detailed BTC/USD chart. Source: Il Capo from Crypto / Twitter
Signs of the end of good times for the US dollar
As for the US Dollar Index (DXY), a major catalyst for the cryptocurrency markets, there was some relief on the horizon.
Related: BTC Price Hasn’t Reached the ‘Maximum Pain’ – 5 Things to Know in Bitcoin This Week
According to Crypto’s Il Capo, a new 20-year high was still on the way, but a long-term “parabola” break in place on the dollar’s strength since 2021 would follow.
“We could see a deeper impulse in the fund giving BTC/SPX more time to rally,” fellow trader Mayne explained in an accompanying thread, also referring to the S&P 500.
“If this area fails, we could see a breakout in the dollar’s parabolic rally and possibly a sustained rally for much longer.”
The DXY is hovering around 110.6 points at the time of writing, having held 110 as support – still marked by the lowest levels since September 21st.