Bitcoin’s Market Structure Indicates an Uptrend, Says Analyst Jason Pizzino
Crypto analyst Jason Pizzino suggests that Bitcoin’s market structure is currently indicating the start of an uptrend. He emphasizes that if BTC can successfully settle above the $28,400 level, a strong upward surge is likely to follow. Pizzino notes that as long as the market continues to hold up since the September low, it appears to be the beginning of a new trend to the upside. However, he warns that a breakdown to key support levels around $27,200 could send prices lower.
Weakening US Dollar Could Fuel Bitcoin’s Rise
Pizzino also highlights the potential impact of a weakening US dollar index (DXY) on Bitcoin’s performance. He explains that a weaker dollar often indicates strength in risk assets like BTC. Pizzino suggests that if the DXY reverses downwards after being rejected at the 107 level, which is the 50% retracement level between its last swing high and low, it could add fuel to Bitcoin’s fire.
Resistance Levels and Short-Term Trends
While acknowledging the current upward trend, Pizzino points out areas of significant resistance that may cause a reversal in the coming days or weeks. He mentions that there is some resistance at the 50% retracement level and advises monitoring whether the US dollar breaks above 107 and consolidates. The levels to watch for are 109 to 110.
Current Bitcoin Price and US Dollar Index
At the time of writing, Bitcoin is valued at $27,907 with the DXY trading at 106.29 points.
Hot Take: Bitcoin Primed for Upside Move Amidst Weakening Dollar
Bitcoin’s market structure suggests the beginning of an uptrend, provided it stays above the $28,400 level. A breakdown to key support levels around $27,200 could reverse this trend. Additionally, a weakening US dollar index may further fuel Bitcoin’s rise. However, resistance levels and short-term trends need to be monitored. With Bitcoin valued at $27,907 and the DXY trading at 106.29 points, the stage is set for a potential upside move in BTC amidst a weakening dollar.
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