No sign of a breakout as $33,000 becomes resistant overnight and altcoins are trading mostly flat due to weakness in BTC price.
BTC Price Reverts to $33,000 Support
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD as it was below a previous support level until Friday. Earlier in the week, $33,000 saw multiple tests, but remained in place as a support, this was only reversed on Thursday.
The $33,000 price level then got involved in some form of short-term support/resistance flip, with Bitcoin failing to recover it and, conversely, seeing rejection on any attempted rally. At the time of writing, the largest cryptocurrency was trading at around $32,700, stuck in a narrow range with $32,000 as the bottom. Vechain (VET) price has risen.
For popular trader Crypto Ed, the time had come to look at macro trends for hints as to what might happen to Bitcoin next. In particular, the US dollar was on the radar – the upward point in the US dollar currency index (DXY), currently at 92.4, should decline first to give crypto markets room to breathe. “I’m still eyeing DXY for strength in crypto…I don’t think until DXY hits the red box, reverses and continues its downtrend. ~$94 it is,” he said on the day.
US Dollar Currency Index (DXY) 1 Day Candlestick Chart
As Cointelegraph often reports, the strength of DXY is usually accompanied by increased price pressure on Bitcoin, while the reverse is also true. This inverse correlation is not infallible, however, as several exceptions to the rule have occurred in the past year.
Altcoins Stutter While Bitcoin Drops
Gains on altcoins, meanwhile, were dampened by the decline of Bitcoin. The top 50 cryptocurrencies by market cap saw modest losses overnight as opposed to previous strength. Ether (ETH), the largest altcoin, also followed sideways despite continued progress on its forthcoming London hard fork. Pancake swap price has risen.
However, as noted by trader and analyst Rekt Capital, price action may still be targeting levels below $2,000 and remain “confluent” with the overall uptrend in 2021. “Lots of confluent support in the $1850-$2000 area,” he added. he added as part of several comments on Thursday. An attack on 0.07 BTC for the ETH/BTC pair also ended in defeat as the week drew to a close, albeit without major resistance around 0.075 BTC.