Market Watch Oct 5: Bitcoin Crosses $20,000 As US Dollar Declines.
Bitcoin managed to break the resistance around the $19,600 mark and crossed the crucial $20,000 threshold.
Currently, Bitcoin is trading at $20,199. It gained 3.09% in the last 24 hours. Ether, the second-most favored cryptocurrency, is up by 2.07% and changing hands at $1,355. The altcoins have also seen significant gains. The biggest gainer in the last 24 hours is Dogecoin. It’s up by 7.82% in the last 24 hours. XRP is up by 4.67%, Solana 3.10%, Polygon MATIC 3.05%, and Cardano 1.10%.
Bitcoin will likely make a run for the $21,000 mark in the short-term as was observed last month; a sell-side pressure at the level remains significant. A popular trader Il Capo of Crypto highlighted $20,500 – $21,000 as a sell zone. He believes that if the price gets there, traders shouldn’t be too bullish. Razzoorn, an analyst at The Birb Nest, said the current charge was Bitcoin’s fifth attempt at escaping a major liquidity cloud in several weeks. Bitcoin’s rally is in line with a broader risk asset tide which saw US equities finish noticeably higher the day prior. The US dollar saw a setback, the dollar index extending losses to approach 111 points and threatening support in place since mid-September.
Michael van de Poppe, CEO, and Founder of Eight is very much optimistic. He said Bitcoin is flipping the $19,500 for support. Poppe highlighted that if the range-high at $19,600 holds for Bitcoin, it will continue the movement towards $22,400. BTC price can rally higher as higher lows have been established on the 8-hour chart but the Relative Strength Index has yet to display the necessary momentum to support a bullish scenario.
Furthermore, there is potential for a double top formation near the current price levels. If Bitcoin sees a fall, it could be to the $19,200 mark, but a breach above the $20,700 may invalidate the pullback scenario.