BITCOIN TRENDING BACK TO SUPPORT AS THE DOLLAR TAKES BACK SOME GROUND LOST LAST WEEK
- Friday, and now continuing into Monday, the U.S. Dollar Index (DXY) is up 1.43% from the bottom established just a few day ago.
- A resistance looms for the DXY at the current level of 102.283.
- Bitcoin returns under $30K
- Bitcoin RSI can be found at 58, indicating slightly overbought on the index.
The U.S. Dollar has seen a snark retracement back up to the top of its trendline, hitting resistance and slowly making its way back to the 101.864 region. The past 2 opening days for the stock market, as given way to the dollars bounce off of its previous low, seen Feb 1st 2023. This as acted as support and is currently holding the dollar afloat above the 101 region.
Bitcoin at the time of writing, sits at $29,445, down 2.72% in the last 24 hours. It seems the push and run-up from last weeks inflation numbers has come to an abrupt halt, sending BTC back to retesting critical supports for the crypto.
BTC is the most known and largest crypto in the cryptocurrency sphere, currently holding 46.92% of the cryptocurrency market value at the time of writing. Bitcoins rise over the past week, seemed to have been sparked by the inflation data coming in better than anticipated. Down to 5% from the expected 5.2%. On a macro perspective, it was known 2 moves were more than possible on Bitcoins chart, this was indicative of the over-sold RSI and lower volume ensuing the crypto. This was giving way to the downside that has been seen this Monday afternoon.
BITCOIN COMPLETES A CORRECTIVE MOVE TO THE DOWNSIDE
According to the chart above, made by Conferment_RM on YouTube, shows Bitcoin completing its crashing structure down to the 1.618 Fibonacci level at $29,442. This did not come without the wicking below the target. Currently, Bitcoin can see be seen within a macro bullish trend, holding a critical support on the 4 hour time frame.
If short term supports are lost, $28,800 would be the first line of defense seen that the 1.0 Fibonacci level, then the .786 at $28,488. Both of these trends still yielding a bullish result, but we can still note that BTC has not come back to trend to back-test the region of breakout. The 4 hour time frame does show BTC hitting a bottom on the RSI, trending to 30, and has since seen a bounce.
