The Bitcoin price has been able to hold its ground over the weekend, and it’s hinting at a potential bullish week for the nascent asset class. Over the last month, cryptocurrency prices have remained in a narrow range. They are unable to flip north of $20,000 to support.
Bitcoin (BTC), which trades at $19,000. It has a profit of 2% in the last 24hrs and a profit of 3% over the past week. The crypto top 10 shows that most cryptocurrency are trading sideways, or making small profit in the past hour. This is because this session has triggered low bullish momentum.
Bitcoin Ready for The Upside. The key is $20,500
Today’s bullish trading session has been supported by a rebound in traditional finance markets. Major U.S. indexes were able to rebound from last week’s downside move and have been recovering allowing Bitcoin and other cryptocurrencies to display some strength on lower timeframes.
Many market participants were expecting greater losses due to the insolvency rumors surrounding Credit Suisse. The market seems to have priced them in the upside so far, despite the fact that top bank representatives deny the rumors.
Adam Mancini, an analyst and trader, celebrated recent bullish stock market price action and suggested that the bullish momentum could continue. Bitcoin and crypto moved in line with equities as well, so the rally may translate to further gains.
Mancini wrote the following about the current price action for the S&P 500, and the longer implication:
Excellent follow through in #ES_F: 3635, 3670 were my targets today & 3670 just hit. Key to note-by reclaiming 3635, this makes Fridays drop a big, failed breakdown & bottoming signal. The bulls need to follow their lead. Next up is 3705, and 3635-45 must now hold support.
Are There Stars in the Way of a Bitcoin and Crypto Rally?
Material Indicators’ data shows that there has been a significant increase in the buying of Bitcoin by all types of investors. This supports Bitcoin’s bullish thesis. If these investors continue to bid on the price action, BTC’s price might extend its bullish momentum.
The chart above shows that there is a significant ask (sell), liquidity for Bitcoin at levels higher than current. The selling order could stop the cryptocurrency from recovering higher levels and might limit any rally in a short period.
Additional data provided by analyst Justin Bennett indicates that the U.S. Dollar continues to see weakness over today’s trading session. NewsBTC reports that DXY Index, U.S. Dollar, bullish price action has had a negative impact on risk-on assets like Bitcoin and equities.
While the currency braces for more losses, it could bounce back and climb to the top of Bennett’s channel. According to the analyst, Bitcoin can climb up to $26,000 as long as it remains above $18,700.
There is no change. 👇 https://t.co/ICHbqXGbQr
— Justin Bennett (@JustinBennettFX) October 3, 2022