Bitcoin faces the highest levels in the U.S. Dollar Index of 2023 so far as BTC price action wobbles.
Bitcoin (BTC) hugged $26,000 at the Sept. 24 Wall Street open as a weekly close “nosedive” brought lasting consequences.
Bitcoin must preserve support now, analysis says
Data from Cointelegraph Markets Pro and TradingView showed BTC price trajectory uncertain after briefly piercing $26,000 support.
Sideways weekend trading soon turned sour into the new week, and upset overnight meant that bulls were unable to recoup lost ground.
#Bitcoin Weekend price action wasn't exciting until the later hours on Sunday as expected.
— Daan Crypto Trades (@DaanCrypto) September 25, 2023
Price held around the CME Close price until futures opened and then took a nose dive. https://t.co/HgmYShdrjA pic.twitter.com/VAzov8haCJ
“Bitcoin failed to break through local resistance in the form of a descending trend line, and it looks like a little bearish right shoulder may form,” analyst BaroVirtual, an ambassador for on-chain data platform Whalemap, summarized.
BaroVirtual uploaded a daily chart snapshot to X (formerly Twitter), showing a potential head-and-shoulders formation about to conclude.
“If true, BTC risks falling into the $22,000-$20,000 range,” they added.
That perspective chimed with others already expecting a return toward the $20,000 mark — something absent from the BTC price charts for six months.
Popular trader and analyst Rekt Capital, who previously envisaged the possible reappearance of the low $20,000s as part of a breakdown from a double-top structure, now placed emphasis on holding current levels as support.
“Bitcoin could downside wick into the ~$25000-$26000 area on this current move down,” he wrote in part of fresh X analysis on Sept. 25.
“But if ~$26000 begins to act as resistance then that could be a bearish contributing sign that the ~$25000-$26000 area is weakening as support. If BTC turns the ~$25000-$26000 area into new resistance, price would collapse somewhere into the ~$22000-$24000 region to find a Local Bottom ‘C.’”
An accompanying chart laid out the key levels.
DXY surges to new 2023 highs
Macro markets, meanwhile, opened to another potential headwind for Bitcoin and crypto — an unrelentingly strong U.S. dollar.
Related: US gov’t shutdown looms — 5 things to know in Bitcoin this week
The U.S. Dollar Index (DXY) continued its march higher, hitting 106.1 — its highest since November 2022.
Since hitting 15-month lows in July, the DXY has climbed 6.5%, displaying strength, which historically has hampered risk asset and crypto market performance.
Painful grind lower on risk assets as yields and DXY grind higher
— Skew Δ (@52kskew) September 25, 2023
Going to let this trading session develop more https://t.co/C67I5tJHRH
“DXY rocketing higher - to the detriment of BTC Crypto and other risk assets,” Matthew Dixon, CEO of crypto rating platform Evai, wrote in part of a reaction.
Dixon had previously eyed a potential cooling off in DXY strength, giving Bitcoin and altcoins room for a relief bounce.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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