Bitcoin bulls lie in wait as US dollar strength hits 5-month lows

Bitcoin (BTC) continued to clasp cardinal enactment connected Dec. 2 arsenic United States stocks fell connected the Wall Street open.

BTC/USD 1-hour candle illustration (Bitstamp). Source: TradingView

DXY weakness offers anticipation of "Santa rally"

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD arsenic bulls bought clip betwixt $16,800 and $17,000.

Analysts had earmarked the erstwhile arsenic a cardinal level to retain, this nevertheless successful question astatine the clip of penning arsenic stocks shed 1% to commencement the session.

Popular crypto analytics relationship Nunya Bizniz queried whether it was clip for a “decision” connected S&P 500 performance, eyeing a signifier which suggested a section apical whitethorn soon appear.

Should that beryllium the case, Bitcoin’s correlation to accepted hazard assets would beryllium tested, this having ebbed successful the aftermath of the FTX meltdown.

For the meantime, however, the inversely-correlated U.S. dollar gave bulls small to interest about, the U.S. dollar scale (DXY) hitting five-month lows.

DXY wicked down to conscionable 104.37 connected the time earlier rebounding supra 105 astatine the Wall Street open.

U.S. dollar scale (DXY) 1-day candle chart. Source: TradingView

Fellow expert Pumpcat frankincense eyed the six-month adjacent for the illustration owed astatine the extremity of December.

“I deliberation the probablity for a longterm correction is precocious from present on,” helium predicted.

Another fashionable Twitter analytics account, Cold Blooded Shiller, additionally entertained the thought of a “Santa rally” should macro information and comments from the Federal Reserve complement hazard plus show — to the dollar’s detriment.

“Markets are intelligibly astatine an important constituent - some the $DXY looking similar freefall + markets similar $SPX looking to effort and interruption the large trendlines that person kept them capped,” a further tweet connected the time added.

Analyst reinforces $19,500 significance

Eyeing imaginable for upside, trader and expert Rekt Capital stuck with $19,500 arsenic the ceiling for Bitcoin connected monthly timeframes.

Related: Bitcoin miner outflow ratio hits 6-month precocious successful caller menace to BTC price

BTC/USD finished November down 16.2%, having breached done enactment to commercialized successful a caller scope successful the aftermath of FTX.

"BTC mislaid $19500 arsenic support. But it hasn't turned it into a caller resistance," helium wrote.

"Technically, $BTC could alleviation rally to arsenic precocious arsenic $19500 to crook it to a caller resistance. That would beryllium a textbook confirmation of the breakdown. Doesn't person to hap but a possibility."

BTC/USD annotated chart. Source: Rekt Capital/ Twitter

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