- Bitcoin is making good progress towards the crucial barrier of $24,000
- Price has risen $2,700 since hitting $18,200 three weeks ago
- This bear market rally could even go as high as $30,000
Bitcoin has been making tracks in the past few weeks, hitting $21,500 over the weekend, leading to some wondering where it might stop. In this analysis piece we look at the key resistance areas and look at how the U.S. Dollar Index is faring, which could also of course have a big say.
Steady Progress Towards $24,000
Bitcoin has been making steady progress since dropping to $18,200 on October 13, treating prior resistance as support and vice versa, which has led to a $2,700 price increase in just three weeks:
If this strength were to continue, we could see something like this taking us all the way up to $24,000:
The importance of the $24,00 barrier cannot be overstated, as it forms the top of the channel in which Bitcoin has sat ever since entering it back in June:
Breaking above this barrier and using it as support would be a huge boost for Bitcoin and would suggest that a bigger bear market rally is on the cards, with $30,000 the next key region:
U.S Dollar Index Looks Primed
There is a fly in the ointment however, in the space of the U.S. Dollar Index. The DXY has been one of the contributory factors to Bitcoin’s decline this year as investors flock to cash for safety while traditional markets slump. The DXY looked to have topped out in September, with its reversal facilitating Bitcoin’s recent run, but there are signs that it could be warming up its thrusters again:
As we can see, the DXY has used the prior resistance at 110 as support in a textbook manner, with this consolidation looking like it is building a platform for a run at its 2002 high of 120. If the DXY does indeed start to make good on this intent then Bitcoin and stock will certainly suffer until that 120 is hit. If, however, that 120 level is broken and treated as support in itself, then Heaven help Bitcoin and stocks.
