Bitcoin has recently displayed the strength it requires for higher continuation, according to Michaël van de Poppe, subsequent to the preservation of key trend lines. Data from Cointelegraph Markets Pro and TradingView displayed a five-day high of $27,666 for BTC/USD on Bitstamp.
The pair maintained its hourly timeframe strength following a weekly close just below the $27,000 mark. With the United States equities in a tight range, crypto analysts are searching for indications of where markets may go next. Van de Poppe, founder and CEO of trading firm Eight, remains positive about the outlook.
Bitcoin’s journey upwards and testing of the $27,600 mark has been viewed as good signs. The 200-week moving average and exponential moving average, which functioned as support for two months, retested late last week. Maintaining the 200 MA and EMA on a weekly time frame implies a continuation towards $38,000-42,000 from here.
The breakdown and reclaim have been well-received, indicating a potential move back to range highs. Some traders still believe a $40,000 magnet for BTC price is plausible.
On the other hand, monitoring resource, Material Indicators, suggests that volatility remains absent while examining the state of the BTC/USD Binance order book. It has been observed that markets are being largely controlled by Binance spot buyers as Coinbase spot led this move with strong positive spot delta (market buying).
Meanwhile, the U.S. dollar strength remains a focus of attention following a week of solid gains. The cryptocurrency market has become inversely correlated to the dollar, which underwent a breather, allowing crypto assets to recover. However, a very strong close for the U.S. dollar index (DXY) could continue to pressure the crypto market.
In summary, while some analysts and traders project a potential continuation towards the $38,000-42,000 range for Bitcoin, the prevailing strength of the U.S. dollar may counterbalance this trajectory. This interplay between crypto and the dollar requires constant monitoring by investors, as it directly affects the outlook for the crypto market. As always, readers should conduct their own research when making a decision involving investment and trading moves, since risk is inherent in every venture.
Source: Cointelegraph
