Bitcoin price (BTCUSD) is up for the second consecutive day as investors react to the overall weaker dollar. The currency is trading at $10,880, which is the highest it has been since September 21. Other digital currencies like Ethereum and Ripple are also gaining.
The weaker US dollar is the main reason why Bitcoin price is rising today. That is because, the dollar usually has an inverse relationship with Bitcoin and other assets like gold and crude oil. Today, the dollar index, which measures the performance of the dollar against peers, has declined by about 0.10%. That has helped push the BTC price higher.
Meanwhile, Bitcoin is rising even after investors raise questions about the industry. That is after a major cryptocurrency exchange in Singapore reported a major hack on Friday. In a statement, KuCoin said that hackers had accessed its hard wallet and siphoned digital currency worth more than $150 million. That makes it one of the biggest hacks on record.
At the same time, the amount of Bitcoin held by exchanges has dropped to a two-year low. The report cited data from Glassnode, a digital currency analytics firm. However, while this may appear bearish, the report said that it was actually a bullish sign from long-term investors who have moved their holdings to cold wallets.
Bitcoin price technical analysis
On the daily chart below, we see that Bitcoin price has risen to an intraday high of $10,915 today. That is only 85 points below the important resistance level of $11,000. At the same time, the price has also moved above the 25-day and 50-day exponential moving average, which is a bullish sign. However, it is worth noting that this is happening at a time when the volume is below the 20-day moving average.
Therefore, in the near term, I suspect that the price will continue rising and possibly test the resistance at $11,000. On the flip side, a move below the support at $10,129 will invalidate this trend.
BTC price forecast