Bitcoin bulls lie low as dollar strength hits 5-month low
Bitcoin (BTC) continued to hold key support on December 2 as US stocks fell at the Wall Street open.
DXY Weakness Gives Hope for ‘Nisser Rally’
Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as bulls bought time between $16,800 and $17,000.
Analysts had earmarked the former as a key level to hold, this was still in question at the time of writing as shares fell 1% to start the session.
Popular crypto analysis account Nunya Bizniz asked if it was time for a “decision” on S&P 500 performance, see a pattern that suggested a local top could soon emerge.
Should that be the case, Bitcoin’s correlation to traditional risk assets will be tested, and this has ebbed in the wake of the FTX meltdown.
Meanwhile, however, the inversely correlated US dollar gave bulls little to worry about, with the US Dollar Index (DXY) hitting a five-month low.
The DXY fell to just 104.37 the day before rebounding above 105 at the Wall Street Open.
Fellow analyst Pumpcat therefore saw a six-month conclusion for the chart due in late December.
“I think the probability of a long-term correction is high from now on,” he predicted.
Another popular Twitter analysis account, Cold Blooded Shiller, as well entertained the idea of a “santa rally” should macro data and comments from the Federal Reserve complement the performance of risk assets – to the detriment of the dollar.
“Markets are clearly at an important point – both $DXY looking in freefall + markets like $SPX looking to try to break the major trend lines that have kept them confined,” a further tweet on the day added.
Analyst reinforces $19,500 significance
Looking at the potential for upside, trader and analyst Rekt Capital stuck with $19,500 as the ceiling for Bitcoin on monthly time frames.
Related: Bitcoin Miner Outflow Ratio Hits 6-Month High in New Threat to BTC Price
BTC/USD ended November down 16.2%, having broken through support to trade in a new area in the wake of FTX.
“BTC lost $19,500 as support. But that hasn’t made it a new resistance,” he wrote.
“Technically, $BTC relief could increase to as high as $19500 to turn it into a new resistance. That would be a textbook confirmation of the breakdown. Doesn’t have to happen, but a possibility.”
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
