Bitcoin (BTC) had a rather turbulent course yesterday. First came the rapid decline pod $20,000 followed by a quick rate rotation with growth they $20,000. And you know what is the most interesting thing about it? This price action is definitely a bullish signal. I managed to add a small update to yesterday’s analysis in the afternoon, where you could see that the dollar index pumped solidly. However, Bitcoin has held up very well. I would say that Bitcoin really wants to go up.
Bitcoin more stable than gold and oil
The dollar index pumped unprecedentedly yesterday. By about 1.6%, which is quite a bargain for such a market. Moreover, the rate has an overlap above that bearish structure in the form of a rising wedge. I’m not entirely sure, but from what I’ve been looking, the dollar index hasn’t appreciated in a single day like this in years. The biggest net gain was around 1%, now it’s almost 1.3%.
But one thing is important for us. Gold shed almost 3% in a single day yesterday. Which is a huge loss for such a large market. It’s like Bitcoin has dropped 20% from current prices. Oil has a net loss of about 9%. At one point, however, it was more than 10%. And bitcoin? Our bitcoin has zero loss for Monday. Although the dollar index had one of the strongest days, which implied a significant risk off. By the way, the stock market also held up well. Abbreviation risky assets they don’t have much place to fall anymore.
Current situation on 4H BTC/USD
As can be seen from the 4H chart, yesterday was seriously very turbulent. First thing in the morning, a considerable drop below 20,000 USD. Subsequently, the rate came to a complete halt, giving way to a resurgence above $20,000. It was quite a laughable price action, but it is clearly a strong signal for us. It may not seem so at first glance, but according to yesterday’s context, Bitcoin is now a strong and stable market.
Later, the development was no longer so friendly, because the next step was once again passed through his fingers. However, we are still holding above $20,000 and that is key for us. In short, we want BTC to stay above the support zone. On the other hand, it would be nice to see a proper rebound in the near future. Hopefully the market is preparing for it in the next few weeks.
In conclusion
All in all, the market is solid, because it is stable. That’s why I say that the slow dream retracement can become a reality. But something can go wrong and we will have fun. I don’t understand why the dollar index pumped so crazy.
It seemed like an initial reaction to some new information, which in turn waved with anticipation. There was nothing in the mainstream and the FOMC minutes are not released until tonight. Would something be missed? Hard to say. Anyway, there will definitely be a short summary article on the FOMC minutes tonight.
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ATTENTION: None of the information in the article is investment advice. The analysis does not attempt to predict future price developments. It serves exclusively as educational content on how to think about the market. Do your own research and analysis before making any investment, you always trade at your own risk. The kryptomagazin.cz team strongly recommends individual consideration of risks!
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