Up or down? These bitcoin price levels point to the next move of $ 13,000

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Bitcoin (BTC) price had a tremendous month as the price jumped from $ 10,500 to $ 13,800. Over the past few days, however, the momentum has slowed amid mounting coronavirus fears. Bitcoin’s price fell from $ 13,800 to $ 12,900 on October 28, making the recent breakout a fake.

In addition to a correction in the crypto markets, the equity and commodity markets also showed weakness. When the S&P retraced 4% on Wednesday, silver also corrected 6%. The only asset that did relatively well was the US dollar currency index (DXY). In other words, investors are flying towards USD again for security reasons.

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The range of $ 13,500 to $ 14,000 confirms the resistance for Bitcoin

BTC / USD 2-day chart. Source: TradingView

The 2 day chart shows obvious resistance in the $ 13,500-14,000 area as a rejection can be seen in this area. The $ 13,500 to $ 14,000 area is the final major hurdle before a potential new all-time high can be reached. Many investors and traders see this area as critical.

The graph also shows a clear support zone that can be tested in the coming period. This zone is marked between $ 11,600 and $ 12,200. If this area is used as a support, a new area-bound construction can be set up to begin a healthy period of accumulation.

DXY is jumping up and dropping the BTC price

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

With the fear of possible complete lockdowns across Europe, the flight towards security also begins.

The first wave was there in March 2020 when the flight towards the US dollar was seen as a market collapse. As a result, the US dollar currency index (DXY) hit a low point and recovered from 92.50 points. It is currently close to 94 points that caused the DXY Index’s recent rebound to cause weakness in other markets.

Bitcoin has been down sharply in the past few days, but even silver showed a 6% correction in one day.

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

As the data shows, the correlation between Bitcoin and the DXY index has been reversed since the March crash. This is also similar to the movements of gold.

However, from this data it can be deduced that the likelihood of further corrections for Bitcoin is increasing given the weakness of the old markets and the social unrest surrounding the possible lockdowns.

A correction at this point would not necessarily be unhealthy for the Bitcoin market as it could lead to further accumulation.

The majority of investors definitely want a straight line toward $ 200,000, but that just doesn’t happen. In the best case, Bitcoin is at the beginning of a new cycle through which the boring side part repeats itself over and over again. Once all levels have been tested, parabolic movements can occur in pricing.