Bitcoin reclaims $21K as US dollar corrects: What analysts are saying about BTC
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Bitcoin has breached the $21,000 mark in intraday trading on Friday, sparking a bear market rally as the recently hot US dollar cools some of its momentum.
The weakening of the dollar index has seen a stir in risk-asset markets, with cryptocurrencies and stocks on the rise again ahead of the weekend.
A look at the cryptocurrency’s flagship performance today shows that we currently have a return of 9.7% over the past 24 hours. Bitcoin (BTC/USD) is currently hugging $21,186 to put the “digital gold” over 5% positive on a weekly basis.
As Bitcoin recovers from its decline to June 2022 levels, the stock market has also seen modest gains (all major US indexes are up more than 1% as of 11:30 a.m. ET on Friday). At the same time, the dollar has fallen against a basket of peers and is down nearly 1 percent.
Bitcoin Price: An Analyst’s View
Bitcoin has also regained the $400 billion market cap level, bringing the total crypto market cap to $1.09 trillion with a 24-hour change of +6.4% at the time of writing.
What next for BTC? Some of the top crypto analysts have shared their short term predictions and analysis.
A pseudonymous cryptanalyst The wolf of a few streets says dollar strength catalyzed a drop to $18,500. The merchant shared via Twitter:
“At the moment, the dollar is correcting and the stock market is showing a small plus, this strengthens the crypto market and the chances of recovery are high. On the weekly chart, this reminds me of a double bottom formation and looks like a consolidation.”
Altcoin Sherpa says the $21,700 area could be of interest to bears, although a breakout here could put Bitcoin at $23,000.
Rekt Capital, another popular crypto analyst with over 328,000 Twitter followers, agrees with the above. He believes Bitcoin could rise to the 200-week moving average (above $23,200) before turning it into resistance.
Earlier in the day, as Bitcoin rose above $20,000, Marcus Sotiriou of British digital asset broker GlobalBlock told clients in a note that the market saw optimism ahead of “next week’s inflation report.”
“Gasoline prices have been reported to be negative for two months in a row – down 8% in July and then down 13% in August. This, combined with the breakdown of respondents to last week’s ISM report showing slower delivery times, could lead to another decline in the US CPI on a year-over-year basis on September 13.
Sotiriou suggests that BTC could go into the report, with inflation fears likely to be priced in ahead of the Fed’s September meeting.
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