Bitcoin Struggles at $26,000 Amid Market Turbulence and US Dollar Strength
Summary:
Bitcoin (BTC) clings to $26,000 amid a significant slump. Analysts warn of potential falls to the $22,000-$20,000 range if support is not maintained. Global markets face potential hurdles as the U.S. dollar continues growing stronger. Experts advise conducting personal research before trading, as all investment ventures carry risk.
On September 24, Bitcoin (BTC) clung to the $26,000 mark as Wall Street opened, due to a significant slump at week's end. Data from Cointelegraph Markets Pro and TradingView revealed an unclear trajectory for BTC prices subsequent to a brief dip below $26,000 support. As the new week began, sideways trading over the weekend soon turned bitter and bulls failed to recover lost territory.
Evening hours on the weekend didn't show remarkable action until Sunday. Price management occurred around the CME Close price until futures were launched, and a plunge ensued. Analyst BaroVirtual, representing the on-chain data entity Whalemap, observed that Bitcoin was unable to penetrate local resistance, emerging as a descending trend line.
It seemed as if a slightly bearish right shoulder was developing. BaroVirtual posted a daily chart on X to illustrate the imminent formation of a potential head and shoulders pattern. If accurate, BTC could potentially fall into the $22,000-$20,000 range.
This view aligns with those who anticipate a return to the $20,000 mark, a figure that's been absent from the BTC price charts for half a year. Renowned trader and analyst Rekt Capital, who previously predicted the reemergence of low $20,000s due to a double top arrangement breakdown, is currently insisting on the maintenance of prevailing levels as support.
As per the most recent analysis on X, Rekt Capital stated that Bitcoin might experience a downside wick into the $25,000-$26,000 range due to the latest downward trend. Nonetheless, if the $26,000 level turns into resistance, this could indicate a bearish sign that the $25,000-$26,000 area is deteriorating as support.
Meanwhile, global markets opened, presenting another likely hurdle for Bitcoin and cryptocurrency in the form of a considerably sturdy U.S. dollar. The U.S. dollar index (DXY) continued its upward trajectory, reaching 106.1 - the highest since November 2022. Since July's 15-month lows, DXY has risen 6.5%, demonstrating a strength that traditionally limits performance in risk assets and cryptocurrencies.
Matthew Dixon, CEO of crypto rating platform Evai, noted the detrimental impact of a soaring DXY on BTC and other risk assets. Dixon previously speculated on a potential slowdown in DXY strength, offering Bitcoin and altcoins the opportunity for a relief rally.
This news piece does not contain investment or trading advice or recommendations. All investment and trading ventures carry risk. Readers should undertake their own investigation before making any decisions.
Published At
9/25/2023 3:26:19 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.