Bitcoin price eyes $24K retest as US dollar dives into monthly close
A strong BTC price weekly close becomes an attack on resistance levels lost the week prior as DXY headwinds lessen.
Bitcoin (BTC) headed toward $24,000 at the Feb. 27 Wall Street open as a strong weekly close translated into further gains.
Bitcoin gains $1,000 versus weekend lows
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD rebounding in line with United States equities futures.
The pair had seen lows of $22,770 on Bitstamp over the weekend, these nonetheless proving short lived as the weekly candle closed above $23,500.
With stocks rebuilding strength into the new week, hopes were high that Bitcoin could continue its upward trajectory to finish February on a high.
“Rejecting at crucial $23.8K level would indicate that we´ll be having another test of the support,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of a Twitter update on the day.
“If that sweep happens and we reclaim, $25K test is inevitable and longs are triggered.”
Popular trader Crypto Tony held similar opinions, still erring on the more cautious side when it came to the overall uptrend enduring.
“I will long if we reclaim $23,750 and remain above – Or I will look to short if we lose $22,900 and remain below,” he told Twitter followers.
Trading suite Decentrader also argued that stronger signals were needed before going long BTC.
“People kept longing Bitcoin as it dropped and now the Long/Short ratio is starting to come down price is starting to recover a bit,” it commented.
“Still very high at 1.8, would want to see more get unwound, before a rally can really get going.”
Dollar reverses prior strength
U.S. stocks continued to recover ground lost the week prior at the time of writing, with the S&P 500 and Nasdaq Composite Index up 1% and 1.2%, respectively.
Related: BTC whale population shrinks to early 2020 levels — 5 things to know in Bitcoin this week
The U.S. dollar index (DXY) meanwhile suffered, dropping below the 105 mark in a boost for risk assets across the board.
“So far, we have a potential fakeout above this rising wedge,” popular trader Justin Bennett wrote in part of his latest dedicated update on the index.
“Things are about to get interesting.”
Popular analyst CryptoCon meanwhile highlighted changes in the correlation dynamic between DXY and BTC.
The #Bitcoin Bull Market is now in full effect according to the DXY correlation coefficient
High correlation after a bear market negative correlation has been the start to every Bull Market
2/3 times this was the precursor to rally, what do you think will happen this time? pic.twitter.com/z516j35BDg
— CryptoCon (@CryptoCon_) February 27, 2023
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