Yesterday the BTC price got rejected at the 0.618 Fibonacci retracement level of $42,430, and is currently trading at $39,200. Bitcoin has been very volatile over the last two months, and has been trading in a range between $34,000 and $46,000.
We could possibly be seeing a test to lower levels again in the next couple of days, where the support levels are at $38,200 and $36,400. It wouldn’t even be much of a surprise if we tested the bottom of the range once again at $34,000. We will only see big volumes of cash come into this market once we have left the range high at around $46,000.
The US Dollar Index (DXY) represents the strength of the US dollar. Yesterday, we saw the daily candle on the DXY chart get rejected at 99.50, and start to trend down. What’s interesting is that the important weekly resistance line, which comes from January 2017, is also at the same level.
We also see that there is bearish divergence on the three-day chart, where the current candles have made a higher high vs. November 22nd 2021, yet the Relative Strength Index (RSI) has created a lower low, over the same period. We want to see a reversal of the uptrend trend on the DXY chart, and the US Dollar start to weaken. This will mean that money will start to flow back into the markets, including crypto.
All eyes are on the “Dixie” over the next couple of days, we want the important 100.00 resistance level to hold, and also to see a reverse of the trend to the downside.