Dollar weakening, Bitcoin moving towards psychological 50,000 target

Bitcoin (BTC) price surpassed the critical $ 40,500 level after Tesla announced that it invested $ 1.5 billion in BTC. The price then spiked to all-time highs and the journey to the next major resistance level of $ 50,000 began.

On the other hand, a suitable environment has been created for altcoin prices to move. So how long will the consolidation in Bitcoin price take? Let’s take a look at the graphics.

Bitcoin price breaks key resistance with Tesla news

4-hour chart for XBT / USD pair. Source: TradingView

The 4-hour chart shows that the biggest daily green candle ever formed in bitcoin price after Tesla news.

As tracked in the chart, the next target stands at the psychological limit of $ 50,000. At the same time, the 1.618 Fibonacci level is often used for prediction when new price discovery is made.

4-hour chart of the BTC / USD pair. Source: TradingView

Another important level to watch for Bitcoin is the order block from $ 43,300 to $ 43,700. As long as that area exists, the upward movement will always be on the agenda.

If Bitcoin price fails to keep this level, a sharp decline is likely. Exceeding the $ 43,300 to $ 43,700 area will push Bitcoin’s price back into the range where it has moved for several weeks. The next level of support is at $ 43,300. If it doesn’t work, support is available between $ 37,800 and $ 38,500.

Weakening dollar strengthens the cryptocurrency market

US Dollar Money Index (DXY) 1-day chart. Source: TradingView

The Dollar Strength Index (DXY) rose slightly after forming a temporary bottom at 90 points. Even though there was a small relief rally, 91.60 points remained and then the U-turn followed.

The main question for DXY will be whether the 90-point level can hold. The bullish divergence is still valid and a new 92 test could occur. Such a recovery will likely lead to a slight decline for the cryptocurrency market.

However, if the DXY index continues its downtrend, there won’t be much left to prevent the cryptocurrency market from making higher peaks and BTC from reaching $ 50,000.

The total value of the crypto money market saw $ 1.5 trillion

Crypto market total value 1-week chart. Source: TradingView

The total market cap of cryptocurrencies has surpassed the previous high. A short test took place in the $ 730 billion area, followed by an almost vertical movement.

The Fibonacci expansion tool shows that the new target is currently at $ 1.5 trillion.

The question is, is the market ready to continue with the next potential target of $ 2.1 trillion from here? If Bitcoin loses the $ 43,300 to $ 43,700 level, a correction in market value may also come and traders will follow the $ 1.05 trillion level for a potential bounce.

The opinions and comments expressed here are only to the author belongs. It may not reflect Cointelegraph’s views. Every investment and trading transaction involves risk. When making your decision, you should do your own research.

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