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Saturday, October 1, 2022

Bitcoin Price Reaches Above $51K

The price of Bitcoin managed to reach its bullish strength after it reclaimed the price of $50,000 the previous week. They then continued to hold this psychological support level on the 27th of December, with USD- its top rival- bouncing off a critical price floor, hinting that it would manage to continue rallying through into 2022.

The DXY, or the US Dollar index, which usually measures the strength of the greenback against a basket of other foreign currencies, has been moving towards the apex of a symmetrical triangle pattern on the daily chart. 

Bitcoin Price Has Been Moving In Tandem With The USD

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In doing so, the index has hinted at the lower trendline of the structure as its solid support level, while hinting that the next breakout between Bitcoin and the USD should ideally be resolved to the upside.

Now, if a symmetrical triangle were to breakout, the technical profit target or bulls would be as high as the maximum distance it takes between the upper and the lower trendlines of the structure when they were measured from the breakout point. This would put the dollar at roughly 97.80 in the next session. 

This outlook appears quite bullish for the Bitcoin/USD when pitted against the prospects of the tapering plans of the Federal Reserve. Interestingly, the Central Bank of the country did previously signal back in December that it was willing to tighten its monetary policy faster than expected- stating that it would follow that up with around three increments in 2022. 

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Rekt Capital, an independent market analyst, went on to highlight that Bitcoin was repeating a trend from its session during May-July that later sent its prices cartwheeling to $69,000. 

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