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Market Analysis

Bitcoin price focuses on $55K as bulls ignore a surging US dollar



Bitcoin (BTC) challenged ranges inside 10% of all-time highs on March 10 as energy within the U.S. dollar did not dent the bullish pattern.

BTC/USD 1-hour candle chart (Bitstamp). Supply: Tradingview

$56,000 resistance is subsequent BTC price hurdle

Information from Cointelegraph Markets and Tradingview tracked a comeback from an in a single day correction for BTC/USD on Wednesday, with the pair concentrating on $55,000.

After hitting two-week highs of $54,500 the day before today, Bitcoin improved on its efficiency to hit $55,700 earlier than encountering a sturdy band of resistance and heading decrease.

The newest resurgence underscores new-found energy within the largest cryptocurrency this month, one thing which continues to take it to inside hanging distance of historic all-time highs at $58,300.

“Stunning rejection on the $56,000 space for #Bitcoin right here. To date, every part wonderful,” Cointelegraph Markets analyst Michaël van de Poppe commented in regards to the previous 24 hours’ motion on Twitter.

“If the $52,000 space holds, we are able to see additional sideways motion and renewed exams of $56,000. Nonetheless, as soon as once more, $52,000 is vital to carry to keep away from additional downwards strikes.”

On the time of writing, there was little indication that a retest of $52,000 was imminent, as hodlers celebrated but extra institutional buyers getting into the Bitcoin adoption race. This time, it was American Residential Guarantee which teamed up with change Gemini to speculate.

“And one other firm has determined to place bitcoin on its steadiness sheet,” Gemini co-founder Tyler Winklevoss responded.

Orderbook knowledge from Binance, the most important change by quantity, confirmed sellers lined up $56,000 and upwards, with sturdy assist out there beneath $49,000.

BTC/USD assist and resistance ranges (Binance). Supply: Materials Indicators/ Twitter

DXY progress spares Bitcoin recent draw back

Elsewhere, March has continued to provide an fascinating countertrend for Bitcoin merchants, with the U.S. dollar flipping to a correlated asset from an inversely correlated one. 

As Cointelegraph usually reviews, the U.S. dollar foreign money index (DXY) tends to spark downward stress on Bitcoin when it strengthens quickly, with the reverse additionally true. Whereas this was a key characteristic of the market panorama all through 2020, this yr has seen the phenomenon’s energy start to erode.

Over the previous two weeks, each DXY and BTC/USD have gained in tandem.

BTC/USD vs. DXY 4-hour chart. Supply: Tradingview

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