The Bitcoin pricing table shows that the ‘Elon Musk’ pump was an outlier. What happens now

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Bitcoin (BTC) had a very volatile week as the price of Bitcoin rose from $ 32,000 to $ 38,500 and back to $ 33,000 in 24 hours.

The initial surge to $ 38,500 came within minutes after Elon Musk added #Bitcoin to his Twitter profile.

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However, there was no follow-up to this price movement on the charts as Bitcoin fell significantly in the hours that followed. Currently, the $ 34,500 area is a significant area of ​​resistance that must be broken if the market is to maintain bullish momentum.

Failure to crack $ 38,000 will result in a dropdown

XBT / USD 4 hour chart. Source: TradingView

The values ​​to be observed are highlighted in the table above. Put simply, $ 38,000 must break for the rally to continue. Flipping this level in support opens the door to new all-time highs.

However, the increase could not be sustained yesterday. After the $ 38,000 level failed, the $ 34,000 level failed to provide much-needed support for further upward momentum.

Hence, the “Elon Musk Pump” can be seen as an outlier and the general trend continues. This is a downtrend since the high of $ 42,000 that is likely to continue unless Bitcoin price breaks through $ 34,500 and converts it to support.

Dollar showing strength is bad news for Bitcoin

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

One of the main arguments in favor of further downward moves in Bitcoin would be the rebounding US dollar currency index (DXY). This index shows a possible bottom formation as a bullish divergence can be observed at the significant 90-point level.

After that, the bullish divergence is confirmed by a higher low, indicating that a larger uptrend is likely.