Bitcoin bulls lie in wait as US dollar strength hits 5-month lows

Bitcoin (BTC) continued to hold key support as US stocks fell at Wall Street’s December 2 open.

BTC/USD 1 hour candlestick chart (Bitstamp).Source: Trading View

DXY’s weak point is the hope of “Santa Rally”

Cointelegraph Markets Pro and TradingView BTC/USD followed suit as the bulls bought time between $16,800 and $17,000.

Analysts have cited the former as a key level to hold, but this is being questioned as the stock is down 1% to open the session at the time of writing.

Popular Crypto Analysis Account Nunya Bizniz queried Whether or not it’s time for a “decision” on the performance of the S&P 500, patterns suggestive of local tops can emerge quickly.

That would test the correlation between Bitcoin and traditional risk assets, which weakened in the wake of the FTX meltdown.

For now, however, the inversely correlated US dollar has given little concern to the bulls, with the US Dollar Index (DXY) hitting a five-month low.

DXY fell to just 104.37 a day before rebounding above 105 at Wall Street’s opening.

US Dollar Index (DXY) 1-day candlestick chart.Source: Trading View

Fellow analyst Pumpcat took note of the chart’s six-month close due at the end of December.

“I think it’s more likely a long-term adjustment going forward,” he said. predicted.

Also add Cold Blooded Shiler, another popular Twitter analytics account. entertained The ‘Santa rally’ idea, with macro data and comments from the Federal Reserve complementing the performance of risk assets, leads to dollar losses.

“The market is clearly at a tipping point, both with $DXY looking like it’s in free fall and markets like $SPX trying to break through the major trendlines that are holding caps,” he said of the day. more tweets Added.

Analysts Reinforce Importance of $19,500

Focus on Upside, Trader and Analyst Potential Rekt Capital Stuck at $19,500 As a cap for bitcoin in a monthly timeframe.

RELATED: Bitcoin Miner Exodus Hits Six-Month High With New Threat to BTC Price

BTC/USD ends November down 16.2%, breaking through support to trade in new ranges in the wake of FTX.

“BTC has lost $19,500 as support, but has not turned it into a new resistance,” he wrote.

“Technically, $BTC could rise to $19,500 and turn into a new resistance. That would be a textbook confirmation of a collapse.

BTC/USD annotated chart. Source: Rekt Capital/ Twitter

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