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Bitcoin (BTC) has had a very volatile week as the price of Bitcoin rose from $ 32,000 to $ 38,500 and back to $ 33,000 within 24 hours.

The first spike to $ 38,500 happened in minutes after that Elon Musk added #Bitcoin to his Twitter profile.

However, no follow-up to that price move was seen on the charts like Bitcoin decreased significantly in the following hours. Currently, the USD 34,500 area is a major resistance zone to break through if the market is to maintain bullish momentum.

Failure to break $ 38,000 will cause dropdown

XBT / USD 4-hour chart. Source: TradingView

The levels that are crucial to keep an eye on are highlighted in the chart above. Simply put, $ 38,000 has to break to continue the rally. Turning this level over for support will open the door to new all-time highs.

However, the increase could not be sustained yesterday. After the failure of the USD 38,000 level, the USD 34,000 level failed to provide much-needed support for further upward momentum.

Therefore, the “Elon Musk Pump” can be considered an outlier, and the general trend continues. This is a downward trend since the peak at USD 42,000 that will most likely continue unless the price of Bitcoin can break through USD 34,500 and turn into support.

Dollar being strong is bad news for Bitcoin

US Dollar Currency Index 1-Day Chart. Source: TradingView

One of the main arguments for more Bitcoin, the downside would be the rebounding US Dollar Currency Index (DXY). This index is at a possible low as a bullish divergence is seen at the significant 90 point level.

After this, the bullish divergence will be confirmed by a higher low, indicating that there is likely more upside potential.