This is the final major hurdle before Bitcoin price can hit $ 20,000


Bitcoin (BTC) price has shown impressive strength over the past few weeks, and today the price hit a new 2020 high of $ 13,666.

This momentum was achieved along with the weakness of the US dollar, and many analysts believe that Bitcoin and other safe assets will do well as long as the dollar remains weak.

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However, since Bitcoin is showing strength, altcoins don’t follow suit and most altcoins sell against BTC. Bitcoin’s dominance rate has increased in the past few weeks. This shows that the dynamics of the market are based on Bitcoin.

Traders expect resistance between $ 13,500 and $ 14,000

BTC / USD 1 week chart. Source: TradingView

The weekly chart shows a clear resistance zone between $ 13,500 and $ 14,250 as the next big hurdle for the markets.

Bitcoin’s price broke the $ 11,600 to $ 12,000 barrier as a crucial barrier for further upward movement. That breakthrough caused the price to continue climbing towards the next hurdle, which is between $ 13,500 and $ 14,250.

An obvious breakthrough is unlikely to be expected all at once as this is the first test of this resistance zone, but the general weakness of the dollar signals that the price of Bitcoin could only rise higher.

The weakness of the US dollar is driving the Bitcoin rally

1-day chart of the US dollar currency index. Source: TradingView

The US dollar currency index (DXY) is currently showing significant weakness after the last test of the 94.6 level was immediately rejected.

This rejection led to DXY falling further. More importantly, Bitcoin’s price has started to rise since being rejected on September 24th.

This rally added $ 3,000 in the price of Bitcoin as it rose from $ 10,500 to $ 13,500. The correlation between DXY and Bitcoin has increased since the March crash, and this is an inverse correlation.

If the dollar holds the 92.50 area for support, there is a potential likelihood of a reversal in Bitcoin price. This would mean a correction in the crypto markets that is not bearish at all.