Bitcoin (BTC) is having a disappointing start to the week. Coming off a rally last weekend, on two occasions BTC/USD has returned to the $60,000 level before falling below $57,000 as market momentum slows.
What to Keep Your Eye On This Week
- $60,000 Resistance Level
After reaching a five-week low of $55,650, BTC/USD has partially recovered to $60,000 on Saturday. The price of Bitcoin is slowly declining, causing the market to slide as well.
Bitcoin is currently trading at $56,662, down 2.27 percent.
Looking at the market, the 57,000 level has proven to be a strong support through the past. Once BTC breaks below this mark, it becomes a strong resistance. Current resistance remains at $60,000.
- Trader’s Confidence
True, the price of the world’s largest cryptocurrency has dropped recently. Having said that, some traders are still convinced that BTC/USD will be hitting $98,000 in November.
Regardless of the fact that many disagree, BTC remains to have bullish prospects.
Taking the shorter time frames tends to show a completely different market as opposed to the longer time frames. Here’s what the market is looking forward to.
- 2017 Déjavu?
TechDev points to data showing that the 2017 bitcoin chart not only repeated itself but also mimicked the real time frames for this bull market’s each session.
Moreover, the chart shows that Bitcoin’s Relative Strength Index (RSI) signal looks like a knock-off from November 2017.
Usually, a BTC bull market is supported by an RSI signal of around 90 or more, well away from the current level.
- U.S. Dollar Strengthens
The U.S. Dollar has overcome a strong resistance this month. With the U.S. Dollar Index (DXY) reaching its highest level since July 2020.
Broadly speaking, a stronger DXY index will have an impact on Bitcoin. Continued appreciation of the US dollar index may lead to an inverted correlation with BTC.
- The Sentiment Lacks Direction
In fact, the Crypto Fear & Greed Index shows that the short-term price action clearly leaves the market entirely neutral. Now that Fear & Greed is at 50/100, you can see that the market clearly has no trend.
Compared to last week’s and last month’s figures, the index remains on the greed level. Moving the index to the level of “Extreme Fear” would indicate that investors are very concerned. This could be an opportunity to buy, while the level of “extreme greed” could lead to a correction.