Bitcoin has entered the week with upside price action into the mid-levels of its current levels. However, bulls face hurdles as an increase in selling pressure set back BTC’s price from $66,000 to a current price of $64,262 at the time of writing.
BTC trends to the downside in the 4-hour chart. Source:
Bitcoin entered a consolidation zone after a flash crash pushed its price from the high of its current levels to the critical support at around $62,500. The bullish sentiment seems to be fading as uncertainty takes over the market.
Many traders were expecting a more decisive price action from the benchmark cryptocurrency and a clearer path towards a short-term price target above $70,000 and ultimately $100,000. Macroeconomic variables seem to be playing against BTC’s price rally.
The U.S. FED Chair Jerome Powell hinted at the beginning of tapering which could remove liquidity from global markets. In addition, the crisis with Chinese real-estate giant Evergrande continues to wreak havoc across the financial sector with many investors fleeing to the U.S. dollar.
As seen below, the U.S. Dollar Index (DXY) has been trending to the upside since November 10th. At the same period, Bitcoin took its dive to the lower $60,000s bringing the entire crypto market with it.
U.S. Dollar Index trends to the upside in the 4-hour chart. Source:
In the short term, there seems to be an inverse correlation between Bitcoin and the DXY. If the U.S. currency gains more strength, BTC’s price could revisit the critical support zone around $62,000.
In that scenario, bulls could face further obstacles. Data from Material Indicators Indicates that Bitcoin has lost some support below $64,000.
As the Fire Chart below shows, there were $21 million in bids (in red below Bitcoin’s price display in blue) for BTC before it was rejected at $66,000. At present, there are less than $15 million in bids with an additional $28 million but much lower at $61,500.
Source:
This suggests that Bitcoin could continue to trend to the downside in the short term. Below $60,000 there was a massive bid wall that was removed at $54,000, but this could imply bullish continuation for Bitcoin or at least more support around $60,000, important support that zone that must be held in order to resume the rally.
As Material Indicators :
(…) a massive ladder of BTC bids down to $54k has been pulled. It’s not a rugpull. They couldn’t get filled that low as the buy zone has moved up.
Bitcoin In Crab Like Price Action, What Are The Price Targets?
On higher timeframes, the Bitcoin Taproot upgrade failed to become a bullish catalyzer as operators were already pricing in the event. In the long term, the improvements made to the BTC network will certainly be a tailwind for the underlying’s asset price.
According to Yuya Hasegawa, an analyst at , the price of BTC dropped due to the U.S. SEC rejection of its linked spot ETF filed by investment firm VanEck.
The price experienced a relatively fast recovery as the stock market trend to the upside, but the analyst expects the price to remain rangebound between $58,000 to $69,000 with a potential for a new all-time high at around $76,000.
A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.
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