Bitcoin has displayed some strength during today’s trading session after re-visiting the bottom of an important trendline. Although the benchmark cryptocurrency has traded in tight range between $18,600 to $19,500, it might be that the monthly close will support volatility spikes as bears and bulls battle for this candle.
Bitcoin (BTC). At the time this writing Bitcoin trades for $19,400. There has been a 2% profit over the last 24hrs and 7 days. Others cryptocurrencies appear to be tracking Bitcoin, as they are making small profits over short periods of time. It is possible that the benchmark cryptocurrency might be planning for more gains.
Bitcoin An Opportunity to Make More Money
In addition to the monthly close, Bitcoin’s recent price action seems to be supported by a crash in the U.S. Dollar. Although the currency reached levels that were last reached back in the 2000s (115 on DXY Index), it was later rejected.
The DXY Index is trading at 112 as of this writing and could return to the September lows it reached in the southern part. The DXY Index’s rally has been one of the main obstacles capping the upside in Bitcoin and other risk-on assets, such as equities.
The crypto market might extend its current bullish price action by revisiting the September lows. Analyst Justin Bennett believes that the DXY Index’s price action could support Bitcoin rallies back up to $26,000.
This level could be reached before the U.S. Federal Reserve Federal Open Market Committee’s (FOMC), next meeting. Bennett shows in the graph that Bitcoin traded in a channel which has a bottom around $18,700 and an upper limit of $27,000.
Bitcoin may be able to recover the channel’s high with U.S. dollar trading at the downside. The analyst wrote: “As long as $18,700 holds, this is my Bitcoin playbook through October”.
Bitcoin On A Lighter “Bear Market”?
Additional information from an analyst pseudonym indicatesBitcoin may be experiencing a lower price movement. The analyst looked into BTC’s price previous drawdown from its all-time highs (ATH) and discovered that the cryptocurrency is only 74% from those levels.
Bitcoin plunged 84% and 93% from their previous highs in the bear markets of 2013 and 2017. It was also down by 84% and 93% respectively during 2011 and 2013. The cryptocurrency could be experiencing a weaker bear market or another decline.
Additionally, an analyst found that Bitcoin was 316 days away of its highest point. Previous years have shown that the average 312 day recovery time for Bitcoin from a crash at its ATH has been common. The analyst concluded that this is the right conclusion.
Current bear market so far has lasted 316 days between 2011 + 2013 + 2017. Either we are nearing the bottom or something is more. Interesting is the average length from top to bottom. This is #Bitcoin at the moment.