Bitcoin is entering the week on a positive note with price action that has taken it to the mid-levels. However, bulls face hurdles as an increase in selling pressure set back BTC’s price from $66,000 to a current price of $64,262 at the time of writing.
Bitcoin moved into a consolidation zone following a crash that pushed the price of bitcoin from $62,500 at its highest level to around $62,500. As uncertainty overtakes the market, it seems that bullish sentiment is waning.
Bitcoin Eyes Fresh Rally, Why Close above $66k Is Important| Bitcoin Eyes Fresh Rally, Why Close above $66k Is Important
Many traders expected a stronger price action by the benchmark cryptocurrency, and a better path to achieving a shorter-term price goal above $70,000 or eventually $100,000. Macroeconomic variables seem to be playing against BTC’s price rally.
Jerome Powell, the Chair of U.S. FED suggested that tapering could be in progress which may remove liquidity from global market. Also, Evergrande’s crisis continues to disrupt the financial system with investors turning their attention to the U.S. dollar.
Below you can see that the U.S. Dollar Index has been on the rise since November 10.Th. Bitcoin plunged to lower levels of $60,000 during the same time, bringing with it the whole crypto market.
The DXY and Bitcoin seem to have an inverted correlation. If the U.S. currency gains more strength, BTC’s price could revisit the critical support zone around $62,000.
Bulls may face additional obstacles in this scenario. Material Indicators data indicates that Bitcoin lost support at $64,000.
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As the Fire Chart below shows, there were $21 million in bids (in red below Bitcoin’s price display in blue) for BTC before it was rejected at $66,000. Currently, the number of bids is less than $15 million with $28 million more but still lower at $61,500.
These signs suggest that Bitcoin may continue trending to the downside short-term. The huge bid barrier at $54,000 was removed below $60,000 and this may indicate a bullish continuation of Bitcoin. Or at the very least, more support at $60,000 which is an essential support zone to hold in order for Bitcoin rally to continue.
As Material Indicators claimed:
(…) a massive ladder of BTC bids down to $54k has been pulled. It’s not a rugpull. They couldn’t get filled that low as the buy zone has moved up.
Bitcoin in Crab like Price Action. What are the Price Targets for Bitcoin?
The Bitcoin Taproot upgrade was not a bullish catalyst for longer timeframes as operators had already priced in it. In the long term, the improvements made to the BTC network will certainly be a tailwind for the underlying’s asset price.
Yuya Hasegawa (an analyst at BitBank) stated that the U.S. SEC rejected VanEck’s linked spot ETF, which was filed by VanEck, and the BTC price dropped.
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Although the stock market trend was to the upside and the price recovered quickly, the analyst predicts that the price will remain between $58,000 and $69,000. There is also the possibility of a new record high around $76,000.