Is the Bitcoin Price Rally Over?

Bitcoin price
Bitcoin

Is the Bitcoin Price Rally Over?  

Bitcoin price trades lower for the third straight day as the correction from recent highs at 12,472 continues. Bitcoin correction follows the pullback in risky assets after the Fed warned markets that the USA economy is still facing risks due to the coronavirus pandemic. Both Nasdaq and S&P 500 also retreat from record highs. 

This week there is a high correlation between gold and bitcoin. Gold retreated from recent highs above the 2,000 mark and now trades at 1,935, while bitcoin retreated from above 12,000 to 11,700. 

It looks like what will drive bitcoin price in the near term is the move of the USD. A stronger USD yesterday and today weigh in bitcoin price. The USD index (DXY) hit two-year lows earlier on the week and boosted all dollar-denominated assets. BTCUSD made fresh one year highs on Monday. 

Most cryptocurrencies today managed to pare early losses. Ripple (XRPUSD) is 0.27% lower at $0.2889. Ethereum (ETHUSD) is 0.17% higher at $408.24, Litecoin (LTCUSD) is 0.16% lower at $62.02, Lumen (XLMUSD) is 1.90% lower at $0.1028.

Bitcoin Price Analysis 

Bitcoin price is 0.15% lower at $11,758, in a pullback that doesn’t threaten the upward trend that started after the March 2020 lows. Bulls need to avoid today a close below yesterdays low at 11,561. If that is the case for Bitcoin, then the correction might continue towards 11,269 the low from August 13. 

If bitcoin manages to rebound today would face the resistance at 11,829 the daily high. More selling pressure would emerge at 12,000 the top from yesterday’s trading session. The next supply zone stands at 12,472 the high from August 17. 

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Bitcoin Daily Chart

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