Bitcoin (BTC) continued its pressure on the October 22nd support, with analysis calling for a new high in the coming days.
BTC/USD 1-hour chart. Source: TradingView
Second day BTC price grill support
Data from Cointelegraph Markets Pro and TradingView captured choppy BTC price conditions at the recent opening bell on Wall Street.
BTC/USD, hovering around $67,000, failed to regain bullish momentum after falling 3% in the US-led sell-off the previous day.
“Early week trading saw a shallow decline as expected,” noted trader and analyst Skew wrote in one of several response posts to X.
Skew suggested that Bitcoin should hit a new high “by mid-week” to demonstrate its robustness.
“Ideally, if this market is really strong, we should see HH above $69,000 by mid-week,” he continued.
On the downside, as you can see from the example chart, the target was around $65,000 along with various short-term exponential moving averages (EMAs).
BTC/USDT 4-hour chart. Source: Tilt/X
As before, some saw the possibility of a deeper retest of support with the target extended to $60,000.
Popular trading account Castillo Trading continued the day with a “very simple setup here for BTC.”
“We need $66,500 support for BTC, failing which we consider a $61,065 nPOC print buy.”
BTC/USD perp 4-hour chart. Source: Castillo Trading/X
Fellow trader Roman added in a recent .
“I would like to learn more to help cool RSI and create volatility,” he told X followers.
“We will need it to break the larger 70,000 resistance.”
BTC/USD 1-day chart with RSI and volume data. Source: Roman/X
DXY reflects macro “uncertainty”.
Meanwhile, attention returned to the strength of the US dollar as stocks cooled off their aggressive gains after hitting record highs.
relevant: Bitcoin analysis shows that ‘risk aversion’ appears to be lower as retail demand increases by 13%.
JA Maartunn, a contributor to on-chain analysis platform CryptoQuant, argued today that “the US Dollar Index (DXY) is rising quite quickly, but few people are talking about it.”
DXY surpassed 104 on this day and is up 3.2% month-to-date.
US Dollar Index (DXY) 1-day chart. Source: TradingView
While traditionally inversely correlated with cryptocurrencies and risk assets, DXY’s strength has so far failed to quell risk enthusiasm even amid a resurgence in inflation.
In his comments, Skew attributed the possible reasons for the DXY rebound to uncertainty about future easing of U.S. monetary policy and uncertainty about the outcome of the presidential election.
“US stocks remain weak but we will be watching for weakness in the US election,” he concluded.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.