Bitcoin (BTC) was really low yesterday, because for several hours it seemed that the market was preparing for a breakthrough S / R level of 47,000 USD. Yesterday’s Price Action was therefore quite exciting. In any case, I am yesterday summed up the weekly chart, so if you haven’t read the analysis, you can fix it now.
Current situation on 1D DXY
V last video analysis I pointed out that it is very important to monitor developments in the dollar index. The course is very dynamic and we mainly broke through the key level. After that strong rally, there was a correction, as expected – thanks to which Bitcoin was able to breathe again. Which happened, as we now know.
However, the dollar index is now potentially corrected. This is because consolidation is taking place in a band that previously functioned as resistance for quite some time. It is possible that the course will break down, but rather less likely. Therefore, it should be borne in mind that the index rate is currently on strong support. Therefore, there is a considerable possibility for reflection upwards. While DXY is on strong support, Bitcoin is approaching resistance confluence.
Current situation at 1D BTC / USD
Like I said, yesterday was pretty hectic for Bitcoin. There was relentless selling pressure and the bears were on horseback for several hours. Especially altcoins were kind of hypersensitive. Although Bitcoin remained in support, the alts developed as if the entire market were to collapse in a moment. So it was nerves, but soon the situation stabilized.
Yesterday’s close on BTC is in the form of a green candle with a lower wick. Simply put, the bulls tried to use the support as a springboard. But today is weaker for now, nothing much is happening. Which is definitely due to the fact that we approached again rezistenční confluence. It consists of a close resistance diagonal, price level 52,500 USD, Low Volume Node volume profile and the so-called Golden ratio on the Fibonacci sequence.
As I mentioned for the dollar index, the impending attack of resistance confluence currently corresponds to a possible rebound from support on the DXY. If the BTC rate is for resistance and the DXY is pumping, that’s a problem.
Indicators
The RSI curve pierced the drawn diagonal, which is definitely bullish. So far, the values are about 61 points, so we are quite close to the border of 70 points. We will probably test those 70 points at the very moment when the course will be below the resistance confluence. The momentum on the MACD is gradually increasing.
In conclusion
It is just quite negative that at the moment when we have to test the key resistance, the DXY course is on the key support. If the dollar index uses support for a new rally, Bitcoin will catch on resistance. In any case, in the coming days, it will be decided whether the market can overcome the peak of September 7.
ATTENTION: No data in the article is an investment board. The analysis does not try to predict future price developments. It serves exclusively as an educational text on how to approach the market mentally. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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