Bitcoin’s (BTC) market structure is currently suggesting that an uptrend is now underway, according to crypto analyst Jason Pizzino.
In a new strategy session, Pizzino tells his 290,000 YouTube subscribers that if BTC can convincingly settle above the $28,400 mark, a strong upward surge will likely form afterward.
“$28,400 is that key level, but it seems like for now, while this market continues to hold up… which it has done all the way since the September low, while this continues on, it seems like it’s the beginning of a new trend to the upside. The only thing that will break this down is of course when the market breaks down to key support levels. So far, that’s around that $27,200-ish level, which would then cause it to come back and test those lower prices.
I think if we break down to roughly $27,200… that could send things a little bit south for longer.”
Pizzino says a weakening dollar index (DXY), which measures the US dollar against a basket of other major foreign currencies, would add fuel to BTC’s fire if it began to break down. A weaker dollar often suggests strength in risk assets like Bitcoin.
He says that DXY could reverse to the downside after a clean rejection at around the 107 level, which is the 50% retracement level between its last swing high and low.
“You’ve got to respect the trend, but we can start to look at areas of significant resistance, which may cause a reversal in the coming days, weeks or months.
So we need to play this like a trader. The trend is still up, but we’re seeing some resistance at the moment on smaller, shorter moves to the upside which means potentially you’re seeing some of the energy run out, at least in the short term. If you start to see the US dollar break above 107 and consolidate. 109 to 110 are the levels that we’re watching…
There’s still potentially some room to run to the upside, but for now, we’re seeing some resistance at that 50% level.”
At time of writing, Bitcoin is worth $27,907 with the DXY trading at 106.29 points.
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