Bitcoin Faced Resistance at $60K. What Are the Key Market Indicators This Week?
Bitcoin (BTC) kicked off the new week with a failure to overcome the $60,000 resistance level.
On Monday, the BTC / USD rate not only failed to overcome the resistance at the level of $60,000, but even dropped below $57,000.
Some analysts believe that Bitcoin may reach projected highs by the end of the month. But others believe the bullish rally will take longer this time around.
Before the weekend, Bitcoin, having hit a five-week low of $55,650, was able to make up for some of its losses, and on Saturday it even tried to climb to $60,000, but it was in vain.
On Sunday, another attempt was made to exceed this level, but for a long time Bitcoin could not stay at the level of $60,000 and then headed down. At the time of writing on Monday, the BTC rate is $58,334.
According to a trader and analyst Crypto Ed, a similar downturn should have occurred in order to increase the chances of a new growth potential returning to the new week.
TechDev analyst cited the data showing that Bitcoin has not only mimicked 2017 figures this year, but also virtually copied the time frame for each phase of its bull market.
According to the chart he published, Bitcoin’s Relative Strength Index (RSI) mirrors its November 2017 numbers.
Changes in the cryptocurrency market have had a negative impact on the derivatives markets as traders began to increase leverage again.
Such actions of traders indicate the expectation of further growth, however, an increase in the number of open positions may lead to an even greater fall in prices.
However, liquidation of positions remains subdued – $70 million for bitcoin and $219 million in cryptocurrency markets in the last 24 hours.
Inflation pressures are already visible in macro markets. As Jason Schenker, president and chief economist of the forecast agency Prestige Economics, explained in a comment to Bloomberg, it is possible that the inflation rates in December will be higher than in November.
However, according to the US Dollar Currency Index (DXY), the US dollar broke through long-standing resistance this month and reached its highest level since July 2020.
Typically, a noticeable gain in DXY has the opposite effect on Bitcoin. Accordingly, November was no exception for Bitcoin, as DXY swaps are rising upward and holding at 96.
As for market sentiment in the cryptocurrency sector, investors seem to be confused.
The latest Crypto Fear & Greed Index reading shows that despite the short-term price action, the market is actually completely neutral.