Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

Bitcoin (BTC) is heading towards either $28,000 or $19,000 and this week could decide everything, fresh analysis says.

IN Twitter comments On Feb. 15, popular trader Skew told followers that BTC/USD is now in a “key zone.”

Bitcoin’s “Next Big Step”

Despite bitcoin bouncing back above $22,000 amid the release of the U.S. Consumer Price Index (CPI) on Feb. 14, bitcoin has yet to resume the meteoric rally that sent it up 40% in January.

However, after two weeks of consolidation, it’s time to make a decision, Skew said.

“I think we are gearing up for the next big move,” he summed up along with a chart showing the respective BTC price targets.

These targets are in the form of $28,000 and $19,000 on the downside. Both overlap to some extent with other viewpoints for a recovery in 2023, with the area just below $20,000 being of particular interest.

Meanwhile, current spot price levels show that Bitcoin is testing “the main area here in a big range,” Skew continued.

“The next couple of days will be important,” he added.

When asked if the odds were in one direction or the other, the answer was less attractive to bulls looking to continue moving towards $30,000.

Skew explained that the combination of the strength of the US dollar, bond yields and stock market performance has already created a problematic scenario for risky assets in general.

“Hence the DXY/JPYUSD structure makes sense for the dollar up on Friday,” the next post reads.

“There is also a mismatch between 2Y and ES; Weakness in high-beta assets today will confirm the decline in risky assets.”

Annotated BTC/USD chart. Source: Skew/Twitter

A trader warns of a “parabolic” move in the US dollar

As Cryptooshala reported, the US dollar index (DXY) is in the spotlight of many market participants this month after seeing its own bounce that could potentially break a multi-month downtrend for good.

Ethereum’s $1.5K Support Weakens as ETH Traders Get A Little Bearish

DXY continues to hold its ground on its latest daily gain at 103.5, according to data from trade view showed.

US dollar index (DXY) 1-day candlestick chart. Source: Trading View

For a fellow trader and TechDev analyst, there is even reason to consider a “parabolic” DXY return to form with all the negative pressure on crypto and risk assets that this implies.

He referred to the relationship between the dollar and Chinese bond yields.

“Interestingly, this liquidity signal showed the same double bottom as the DXY 2 years ago before it went parabolic” — he commented on the chart on February 12.

Annotated chart of macro assets. Source: TechDev/Twitter

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.

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