Categories: Market Overview

Dollar weakness meets alt season: Is Bitcoin price about to hit $50K?

As the chart shows, the next level of interest is the psychological barrier around $50,000. It’s also the next major Fibonacci level. The 1.618 Fibonacci level is often used as a crucial indicator to predict levels in price discovery.

Another important level to watch for Bitcoin is the order block around the $43,300-$43,700 area. Continuation to the upside is likely as long as that area holds.

However, a sharp drop is likely to happen if Bitcoin’s price can’t hold this level. Falling through the $43,300-$43,700 area would generate a cascade of stop/loss triggers as the price of Bitcoin drops back in the range it acted in for several weeks. The next level of support can be found between $37,800-$38,500 if $43,300 fails to hold.

The Dollar Strength Index (DXY) shows weakness after a temporary bottom at 90 points. This bottom formation was marked by a bullish divergence, resulting in a small relief rally. This rally ended at the 91.60 points level and made a U-turn.

The primary question for the DXY now would be whether the 90 points level can hold. If that is the case, then the bullish divergence is still valid and a renewed test of 92 could occur. Such a rebound would likely lead to a pullback for the crypto market.

However, if the DXY index continues its downtrend, then there won’t be much to stop the cryptocurrency market from making higher highs and BTC hitting $50,000.

The total market capitalization of crypto shows strength as it broke through the previous high. Only a minor retest of $730 billion occurred, which was followed by a nearly vertical move.

The Fibonacci extension tool now shows that the new point of interest is now at $1.5 trillion, as the chart shows.

The question is whether the market is ready to continue from here to the next potential point of interest at $2.1 trillion. If the market corrects, which may happen if Bitcoin loses the $43,300-$43,700 level, then traders should watch the $1.05 trillion level for a potential bounce.

Dollar weakness meets alt season: Is Bitcoin price about to hit $50K?, Cointelegraph, Feb 11

The FxPro News Team

This team of professional journalists announces the most interesting and influential articles from the major financial media as a brief summary. All such news may have sufficient potential to affect the course of trading assets.

Share
Published by
The FxPro News Team
Tags: dollar

Recent Posts

EURCHF Wave Analysis 20 December 2024

- EURCHF falling inside minor impulse wave 5 - Likely to fall to support level…

3 days ago

USDCHF Wave Analysis 20 December 2024

- USDCHF reversed from resistance zone - Likely to fall to support level 0.8860 USDCHF…

3 days ago

The US dollar ends the year on a strong note

The US dollar is at two-year highs. Factors such as changes in the Fed's monetary…

3 days ago

How deep will crypto dive?

The crypto market is experiencing a decline, with a potential further drop in value. Bitcoin…

3 days ago

EURGBP Wave Analysis 19 December 2024

- EURGBP reversed from support zone - Likely to rise to resistance level 0.8300 EURGBP…

3 days ago

EURJPY Wave Analysis 19 December 2024

- EURJPY broke resistance zone - Likely to rise to resistance level 165.00 EURJPY currency…

3 days ago

This website uses cookies