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V Tuesday’s analysis at Bitcoin (BTC) we showed that the market did a great deal of work and got very promising levels. Above all, the resistance confluence was broken, which in itself was a huge obstacle to progressing to higher price levels. At the moment, the price repeatedly encounters a price resistance of 47,000 USD, which has so far stopped the influx of shoppers.
Current situation on 1W TF DXY
We haven’t looked at the state of the dollar index for a while. It didn’t happen much in this market either. What is important for us, however, is that the course of the course stopped at two curves moving averages – MA 50 and MA 20. It never ceases to amaze me how ordinary moving averages work from time to time. Especially when they’re close together.
In any case, it doesn’t currently look like DXY should go down. Quite the opposite, because the Federal Reserve is increasingly expected to increase this year interest rates. Maybe even quantitative releasethat have been running for too long. He should use the tool in waves, not continuously.
As for the technical side of DXY, the band lasted around 92.5 points, so I would venture to say that this is the starting position for the upcoming expansion of the exchange rate. The question, however, is how dynamic expansion will emerge. If it is something more modest, then the growth of the dollar could bear Bitcoin.
In any case, it is important to monitor the dollar index. Of course, it is very difficult to adequately arrange yourself accordingly, but one should have a general awareness of whether risk-off sentiment strengthens.
Current situation at 1D TF BTC / USD
As I said in the introduction, the exchange rate repeatedly reaches one of the important resistances, which is around $ 47,000. Just a few moments ago, the bulls tried to break through again, but only narrowly failed in the end. In very low time frames, it can simply be observed that an extremely fierce struggle is taking place at this level.
That $ 47,000 is also the lower limit distribution band from the first half of the year. Therefore, many intentionally shorten this level, because they try to speculate that we will test the distribution department and then go to a new annual low. That would be it according to Wyckoffovy methods correctly. That’s why some people take the $ 47,000 as much stronger resistance than the $ 42,000.
Only time will tell how it really is, and I personally hope that it will be decided this week. If shoppers finally break through the resistance, it will be the second big success in a row, which will greatly increase the chances of a bullish course. In any case, it is crucial for Bitcoin to get out of the current price range, which is risky.
There is still a risk that the bulls will be trapped. In terms of volumes, yesterday was weaker, due to the fact that BTC only consolidated under resistance. But Bitcoin definitely needs volumes to grow steadily with the price.
Indicators
She’s still on the daily RSI divergence, which unfortunately makes the decision difficult. It is not reasonable to ignore bearish divergence in higher time frames. However, it may take a relatively long time for it to completely disappear due to price increases.
If Bitcoin breaks through, the divergence will disappear to just over $ 47,000. In addition, bearish divergence is also on the second indicator. Respectively on the MACD histogram. In the chart with BTC, there are exactly two risk signals that should not be overlooked.
Bitcoin in conclusion
It’s interesting enough to watch the course try to get through the $ 47,000. Moments ago, shoppers were pushed back slightly, but those few hundred dollars are almost nothing. Those rejections are weak, so it is most likely that the breakthrough is about to fall. However, it cannot be ruled out that markets will not want to leave divergence unanswered. Even with that, it is necessary to calculate.
ATTENTION: No data in the article is an investment board. Before you invest, do your own research and analysis, you always trade only at your own risk. The kryptomagazin.cz team strongly recommends individual risk considerations!
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