Bitcoin bulls are fighting to resume the price uptrend after losing momentum to break $21,000. But analysts agree that a short-term correction is coming.
These levels will be decisive for Bitcoin
Bitcoin is heading below 20,000 after a short-term rally where it crossed almost $21,000 on October 27. Small gains were leading to the recent sideways zone that led to consolidation in the $19,000-$20,000 range for weeks. However, despite the minor correction, on Oct. 28, Kitco News analyst Jim Wyckoff suggested that the bulls continue to take control after battling the bears:
Price action this week saw an upside “breakout” from the choppy and sideways range of the last few weeks. There is an incipient price uptrend on the daily bar chart. The bulls have the overall short-term technical advantage to suggest further upward price action in the near term.
Wyckoff’s bullish trend aligns with popular analyst Michael Van de Poppe’s prediction. Earlier, Poppe stated that for Bitcoin to maintain its bullish momentum, it needs to protect $20,500.
Bitcoin technical analysis
At the same time, a review of Bitcoin’s technical analysis points to a bullish trend for Bitcoin. Specifically, a summary of the techniques, ‘buy’ at 11, ‘neutral’ stands at nine, while six support ‘sell’. Elsewhere, the moving averages at nine are for ‘buy’ standing neutral at one while selling is supported by five. Finally, oscillators are predominantly neutral at eight, suggesting two to buy, one to ‘sell’.
Bitcoin price analysis
That being the case, Bitcoin’s short-term rally was a critical catalyst that pushed the overall market to briefly recap the $1 trillion market capitalization. Currently, Bitcoin is trading at $20,950, holding steady relative to the last 24 hours. Notably, the daily chart shows that the price broke above $20,700 before the pullback.
Analysts are optimistic about Bitcoin in the short term. However, the current environment of high inflation, characterized by increases in interest rates, may influence the next price action. Indeed, the prevailing macroeconomic conditions are also moving in part in favor of Bitcoin. For example, the falling British pound (GBP) has caused significant volatility. This scenario led investors to choose Bitcoin, as highlighted by the rising BTC-GBP trading volumes.
Dollar lurks as BTC price recovers
At the end of the Wall Street trading week, BTC saw its price action follow US equities. The S&P 500 and the Nasdaq Composite Index ended October 28 with increases of 2.5% and 2.9%, respectively. Popular analyst Il Capo continued an existing theory of how short-term price action will unfold in his latest Twitter update. “Same” summarized alongside a chart showing potential up and down target levels.
A cautious macro note came from fellow analyst John Wick, who warned that the US dollar could return to pressure risk assets. Commenting on the US Dollar Index (DXY) chart, “We are now watching to see if a green Dot breaks above the Trail line there,” he said:
So that’s a bad combination leading up to the Fed announcement on Nov.
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