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Bitcoin has broken above the $21,000 mark in intraday trading Friday, putting up a bear market rally as a recently hot US dollar cools some of its momentum.
The weakening dollar index has seen a bump in risk asset markets, with cryptocurrencies and stocks rising yet again ahead of the weekend.
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A look at the flagship cryptocurrency’s performance today, shows we currently have a 9.7% return in the past 24 hours. Bitcoin (BTC/USD) presently hugs $21,186 to put the ‘digital gold’ more than 5% in the positive over the weekly time frame.
As Bitcoin recovers from its slump to June 2022 levels, the stock market has also seen decent gains (all major US indices are more than 1% up as at 11:30 am ET on Friday). Meanwhile, the greenback has eased against a basket of its peers and is down nearly 1%.
Bitcoin price: analyst view
Bitcoin has also reclaimed the $400 billion market cap level, the upside pushing the total crypto market capitalization to $1.09 trillion with a 24-hour change of +6.4% at the time of writing.
What’s next for BTC? Some of the top crypto analysts have shared their short term projections and analysis.
Pseudonymous crypto analyst The Wolf of Few Streetssays the fall to lows of $18,500 was catalysed by the dollar’s strength. The trader shared via Twitter:
“At the moment, the dollar is correcting and the stock markets are showing a slight plus, this gives strength to the crypto market and there is a high chance to recover. On the weekly chart, this reminds me a double bottom formation and looks like a consolidation.”
Altcoin Sherpa says the $21,700 area could be of interest to bears, though a breakout here could set Bitcoin to the $23k level.
$BTC: Squeeze came, 21k ish hit. I think it's best to take profit if you bought yesterday/last few days, this is an area of resistance and 200 EMA on the 4h. If this goes higher, I like the 23k area (and 21.7k first). #Bitcoin pic.twitter.com/OveWkbgBao
— Altcoin Sherpa (@AltcoinSherpa) September 9, 2022
Rekt Capital, another popular crypto analyst with more than 328,000 Twitter followers, holds a similar view as above. He opines that Bitcoin could rally into the 200-week moving average (above $23,200) before flipping that into resistance.
#BTC has been able to hold ~$19170 & preserve the subtle Higher Low
— Rekt Capital (@rektcapital) September 9, 2022
Because $BTC lost the 200-week MA weeks ago but failed to flip it into resistance, there will always be the argument that BTC could relief rally into the MA & flip it to new resistance soon#Crypto #Bitcoin https://t.co/UifcxEum4b pic.twitter.com/lWUqF4O1aF
Earlier in the day, as Bitcoin rallied above $20,000, Marcus Sotiriou of UK-based digital assets broker GlobalBlock told clients in a note that the market was seeing optimism ahead of “next week’s inflation report.”
He wrote:
“Gasoline prices have been reported to be negative two months in a row – down 8% in July and then down 13% in August. This, coupled with the breakdown in respondents in the ISM report last week showing slower delivery times, could result in another decline in U.S. CPI year-over-year on September 13th.”
Sotiriou suggests BTC could rally going into the report, with inflation fears likely priced in ahead of Fed’s September meeting.