Bitcoin price needs new high above $69K ‘mid week’ as US dollar surges
2024.10.22 12:03
Bitcoin (BTC) kept up pressure on support on Oct. 22 as analysis demanded a new high within days.
BTC/USD 1-hour chart. Source: TradingView
BTC price grills support for second day
Data from Cointelegraph Markets Pro and TradingView captured choppy BTC price conditions around the latest Wall Street open.
Gyrating around $67,000, BTC/USD failed to regain bullish momentum after dropping 3% in a United States-led sell-off the day prior.
“Shallow pullback as expected into early week trading,” popular trader and analyst Skew wrote in one of several response posts on X.
Skew suggested that Bitcoin should put in a new higher high “mid week” in order to prove its robustness.
“Ideally if this market is actually strong price should make a HH around mid week above $69K,” he continued.
To the downside, as an illustrative chart showed, the area near $65,000 was a target, along with various short-term exponential moving averages (EMAs).
BTC/USDT 4-hour chart. Source: Skew/X
As before, some saw the potential for even deeper support retests, with targets extending toward $60,000.
“Pretty straightforward setup on $BTC here,” popular trading account Castillo Trading continued on the day.
“$66,500 support needs to hold on $BTC, if that fails then we look to long $61,065 nPOC print.”
BTC/USD perp 4-hour chart. Source: Castillo Trading/X
Fellow trader Roman added in his latest X coverage that BTC/USD was “currently bouncing off 66k support level as a bullish break out & retest,” noting downward-trending relative strength index (RSI) values on daily timeframes.
“Would like to see us dive further into it to assist in cooling off RSI & create volatility,” he told X followers.
“We’re going to need it to break our larger 70k resistance.”
BTC/USD 1-day chart with RSI, volume data. Source: Roman/X
DXY feeds off macro “uncertainty”
Attention meanwhile refocused on US dollar strength as equities cooled their aggressive climb after new all-time highs.
Related: Bitcoin analysis sees ‘lower risk aversion’ as retail demand adds 13%
“The US Dollar Index ($DXY) is rising quite rapidly, yet almost no one is talking about it,” J. A. Maartunn, a contributor onchain analytics platform CryptoQuant, argued on the day.
DXY breached 104 on the day, now up 3.2% month-to-date.
US dollar index (DXY) 1-day chart. Source: TradingView
While traditionally inversely correlated with crypto and risk-assets, DXY strength has so far failed to quash risk-on enthusiasm, even amid resurgent inflation markers.
Commenting, Skew suggested possible reasons for the DXY rebound lying in both uncertainty over future US financial policy easing and the outcome of the Presidential Election.
“US Equities still chugging along but will be keeping an eye out for US election weakness,” he concluded.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
