An air of the end of 2020 – The price of Bitcoin (BTC) is making a foray above $20,000. The rise did not last, and the cryptocurrency fell back well below a level it must regain before the monthly close, to avoid a fall to $14,000.
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Bitcoin price above $20,000: the dollar has not said its last word
The price of bitcoin goes up to $20,373 on Bitfinex today, September 27, 2022. However, it fails to hold above $20,000. The cryptocurrency is trading at $19,130 at the time of writing. The markets are currently entitled to a doji.
Bitcoin was temporarily recovering from $20,000, while the dollar (DXY) was falling. The DXY fell back below 114, but it remained close to its highest since mid-May 2022.
Despite these signs of a possible weakness of the dollar in favor of risky assets, the trader Crypto Tony warned markets against too early euphoria.
He pointed out that “the dollar hasn’t quite peaked yet.” Other DXY pumps remain possible, with consequent “retreats” in the price of Bitcoin.
Late 2020: Another Credible Base for the $14,000 Scenario
As the monthly close approaches, the trader Rekt Capital shared a graph, which shows the key thresholds over this period. He believes that Bitcoin should end the month above $19,880to avoid “a break in the tidy monthly”. This tidy is delimited by the $19,880 and the $23,340.
These numbers roughly correspond to the opening and closing level of the previous two monthly candlesticks. The $19,880 is also close to the December 2020 opening level.
If the price of Bitcoin ended the month below $19,880 and such a close leads to further declines over the period, then referring to the November 2020 opening level, the cryptocurrency could drop to around $13,800.
The recent weekly close already heralded dark days for the price of Bitcoin. If the cryptocurrency also misses its meeting at $19,880, the monthly close would then increase the possibility of a bear run for next October, possibly with a drop to the long-awaited or dreaded bottom for this cycle.