Although the odds were in favor of an escape above $ 10,000, sellers managed to take temporary control, and could be generating a short-term trend reversal of the price of Bitcoin. A fall in BTC is being witnessed, how far will it go?
US dollar recovering?
Before studying the price of Bitcoin, it is important to know the full context of the situation. Therefore, we can start with the currency market.
The world’s most powerful currency has been in constant decline for the past few weeks. However, today it reached a very important demand zone, which could function as a floor for a possible drop in price.
This scenario is still the least likely, as the bearish force is the one in full command.
However, what we are seeing at the moment could be the beginning of that setback. Impacting both the US dollar, and possibly Bitcoin.
When conducting a technical analysis of the dollar index chart, there is still no confirmation of this possible scenario. However, the odds are now in favor of this happening.
For a confirmation of this short-term trend change, it would be convenient to wait for a close of 2 4-hour candles above the resistance at 96.5 points.
Bitcoin price technical analysis
Undoubtedly, this small respite from the US Dollar is being a major trigger for the drop in the price of Bitcoin, but in addition, we must add the downward pressure that exists in the area of resistance around USD 9,950.
Today’s candle will be decisive to know if BTC will go close supports, or on the contrary, it will eliminate the bearish intention in the short term.
The EMA of 8 and SMA of 18, still bullish, are being traversed, while the attempt to break the support at USD 9,420 occurs; If effective, the price of Bitcoin could go to visit the demand zone between USD 8,800 and USD 8,400.
What do you think? Will this be the beginning of a significant drop in the price of Bitcoin? Let us know your opinion in the comments, we will be happy to read it.
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