Bitcoin analysis against the US dollar today: continues

2023-12-18 00:24:58

Bitcoin fell slightly during the first hours of Friday’s session, as it works to shake off some recent price fluctuations. This correction comes at a time when the bond market plays an important role, as interest rates exert a noticeable influence on risk appetite and Bitcoin performance.

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Bitcoin occupies a unique position on the spectrum of risk appetite, making it particularly sensitive to changes in bond yields. If US interest rates continue to decline, this might provide a favorable environment for Bitcoin to rise. Investors often turn to assets like Bitcoin when bond yields fall, as they look for higher yields.

Below current levels, the $40,000 level acts as a crucial support level. The presence of the 20-day moving average in this region increases its importance. Many traders view pullbacks as opportunities to buy Bitcoin at a lower price, which may explain why this support level persists. However, nothing is guaranteed to say the least.

To the upside, the $45,000 level represents a notable resistance area. A break above this level might open the way towards the $47,500 level. It should be noted that the $47,500 level has historically been a sticking point for sellers on the weekly charts and, therefore, is a resistance barrier that many market participants will likely pay attention to.

In terms of market sentiment, there is a prevailing bullish outlook for Bitcoin. However, the market is not immune to bouts of volatility, and traders should be prepared for erratic price movements from time to time. As we approach the end of the year, market liquidity might diminish, further contributing to potential price volatility.

Ultimately, Bitcoin’s current correction is part of a broader market trend as it works to unwind the recent price exuberance. The interaction between Bitcoin and bond returns remains a key factor to watch. While potential resistance lies at the $45,000 and $47,500 levels, support at the $40,000 level continues to provide stability. Overall, Bitcoin remains a popular asset among traders, but vigilance is required given the potential for market volatility, especially late in the year. Selling Bitcoin may not be a suitable option unless the price falls below the $35,000 level. Until then, we will have to deal with everything in its context at that time.

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