Originally published on: October 22, 2024
Bitcoin’s price is facing pressure as it hovers around key support levels, with analysts calling for a new high to be reached in the coming days. On October 22nd, BTC/USD failed to regain bullish momentum, staying around $67,000 amidst choppy market conditions.
According to popular trader Skew, Bitcoin needs to establish a new higher high “mid week” above $69K to demonstrate its strength. He pointed out that a pullback to the $65,000 area could be expected, along with tests of short-term EMAs.
While some traders anticipate deeper support retests with targets near $60,000, others remain optimistic about BTC’s performance. Roman highlighted that BTC/USD is bouncing off the $66K support level, aiming for a bullish break out and retest.
As attention shifts to the strength of the US dollar, market observers are closely monitoring the US Dollar Index (DXY) which breached 104 and is up 3.2% month-to-date. Despite the DXY’s rise, risk-on sentiment in the market remains buoyant, driven by factors such as uncertainty over US financial policy and the upcoming presidential election.
While the correlation between DXY and crypto assets is traditionally inverse, the current scenario indicates that risk appetite persists despite the dollar’s strength. Skew emphasized the importance of monitoring US equities for signs of weakness post-election.
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