Bitcoin (BTC) could get a „relief“ boost of about $11,000 as stock markets recover and concerns about the U.S. dollar remain.
In a September 8 tweet, Cointelegraph Markets analyst Michaël van de Poppe said that the macro moves could serve to strengthen the BTC/USD pair.
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The rebound would follow the test times for Bitcoin, which has repeatedly fallen below the $10,000 support since Friday. Based on long-term trends, the leading cryptomoney could benefit from a change in macro sentiment.
„Futures are recovering significantly in the United States. Europe is also recovering,“ Van de Poppe wrote.
„It may indicate a slight relief in $BTC as well toward the $10,600-10,800 area.
Van de Poppe previously warned that Bitcoin was not at the bottom of its downward streak, and could still fall below recent lows to reach $9,500, filling a lower „gap“ in the CME Group’s Bitcoin futures market.
An increase to $10,600 would also constitute a gap-filler, which appeared over the weekend. So far, the BTC/USD pair has failed to pass $10,400.
Not everyone was so optimistic about the short-term outlook. Highlighting the recent action on the charts, veteran trader Peter Brandt described both BTC and Ether (ETH) as „in decline“.
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Broker: USD wins „possible bullish trap“.
While the progress in Bitcoin since April began to disappoint Brandt, the USD continues to give bearish signals to market commentators despite recent strength.
Last week’s 15% drop in Bitcoin Freedom coincided with gains in the US Dollar’s currency index (DXY). However, in the future, a combination of the Federal Reserve’s inflation policy and money printing will weaken its strength.
According to currency broker FxPro, the dollar must reach much higher levels against the major currencies, the euro, the pound sterling and the Swiss franc, to emerge from its prolonged collapse.
„Without accelerated dollar growth and reaching previous levels, we remain within the weakening pattern with short corrections,“ he warned on Wednesday.
DXY seemed to crown its six-day winning streak on the day, hovering around 93.6. FxPro also said that the gains may in fact constitute a „bullish trap,“ meaning that a larger withdrawal may follow, ending the progress.