• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Price & Market
Cap Data from
Nomics Logo Nomics Logo
Bitcoinist.com
No Result
View All Result
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining
Bitcoinist.com
No Result
View All Result
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
Nexo

Downside Risks Grow as Bitcoin Sells Off at $38,000 Once Again

Yashu Gola by Yashu Gola
2 months ago
in Bitcoin
0

Bitcoin continued its weekly bull run into the early Thursday session in Asia but met modest selling pressure as its price attempted to topple a short-term resistance level.

The flagship cryptocurrency brief breached $38,000 before turning lower ahead of the European market open. That marked its second attempt in less than a week to break bullish on the said level, raising possibilities of a potential Double Top formation on shorter timeframes.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT
The red markings represent a brewing Double Top setup in Bitcoin. Source: BTCUSD on TradingView.com

In retrospect, a Double Top formation occurs when an asset forms a high price two consecutive times with a moderate decline between the two peaks. That increases its potential to revisit the support common between the two peaks, followed by an extended bearish breakout.

Bitcoin is halfway forming the Double Top setup, confirmed by its latest pullback from the $38,000-levels. If the pattern holds well, the cryptocurrency risks declining to the support level highlighted with the horizontal support line in red above. It is roughly near $32,500, but the levels may vary based on recent bearish wicks.

Meanwhile, a breakout attempt could turn the support level into a resistance one. It would then provide additional selling pressure as the price eyes deeper ‘Double Top’ targets.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Tailwinds

A recovering US dollar index provides more enduring tailwinds to a potential Bitcoin pullback. Of late, the benchmark index, which measures the greenback’s strength against a basket of top foreign currencies, has risen against expectations, taking cues from a positive growth outlook in the US and a weakening one in Europe.

Bitcoin, which typically trades inversely to the dollar, could ease its recent gains if the dollar continues its recovery upward. Technically, the greenback has broken out of its Falling Wedge structure (a bullish reversal sign) and is now attempting a close above its 20-week moving average at around 91.5.

US dollar, US dollar index, greenback
US dollar index posts solid recovery in early 2021. Source: DXY on TradingView.com

Long-term, the US dollar may continue to feel the downward pressure from abnormal dovish policies put forth by the Federal Reserve and the US government’s $1.9 trillion stimulus package. That expects to effectively reduce the greenback’s purchasing power, aiding riskier assets such as stocks, gold, and bitcoin.

“The support base has risen toward $30,000 on increasing institutional adoption and the potential for the benchmark to become a global reserve asset, outweighing risks of failure,” said Mike McGlone, the senior commodity strategist at Bloomberg, on Bitcoin. “Fintech and greater speculation is the broader crypto-market narrative.”

Bitcoin Wedge

That said, it should be noted that Bitcoin is also attempting to break out of a Falling Wedge pattern. So far, it does not have the volumes required to confirm a breakout. But should they appear—owing to stimulus hopes—then the price may attempt a close above its record high near $42,000, followed by a run-up towards the $45,000-50,000 area.

“Bitcoin $30,000-$40,000 cage may refresh bulls toward $50,000,” added Mr. McGlone.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
© 2021 Bitcoinist.com. All Rights Reserved.
  • Home
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Trade
  • Play Games
  • Mining

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.