Bitcoin (BTC) is showing strong signs of a continued uptrend, breaking above a key resistance level and indicating a potential resumption of the rally that began in early September.
BTC has surged over 2% in the Asian session, surpassing a trendline resistance that had formed from the late September and early October highs. This breakout suggests that the recent price pullback has ended, and the upward momentum from the September lows is set to resume.
Key Resistance Levels and Potential Re-Test
The immediate resistance for BTC lies at $64,461, followed by the late September high above $66,500. While a major hurdle exists around $70,000, where bulls and bears have been engaged in intense battles, a re-test of the breakout points is a common occurrence. Therefore, a temporary dip to the $62,000-$63,000 range is possible before the price continues to rise.
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Dollar Index Stalls
The rise of the dollar index has been a key factor influencing the cryptocurrency market. However, the DXY formed a doji candle on Thursday, signaling indecision among traders. This suggests that the dollar’s recent rally may be nearing its end.
Marc Chandler, chief market strategist at Bannockburn Global Forex, noted that the momentum indicators for the dollar have become stretched. He anticipates technical evidence to support a potential peak in the dollar’s strength.
Also Read: Can Bitcoin (BTC) Break the $65,000 Resistance Level Before End of Week ? Analyzing the Potential
Ethereum Consolidation
Ethereum (ETH) has been trading within a triangular consolidation pattern, bouncing off the 200-day simple moving average (SMA). As Bitcoin shows signs of a bullish move, Ethereum could also be poised for a breakout. If ETH breaks out of the triangle, the next resistance level is at $2,770, which was the April 13 low from where prices surged to nearly $4,000.
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Overall, the cryptocurrency market is showing positive signs, with Bitcoin leading the way. The potential for a continued uptrend in Bitcoin and a breakout for Ethereum could signal a bullish outlook for the broader cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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