Bitcoin bulls seem tired and need to wake up soon. On the other side, the Dollar has been affected by labor market news.
That brings the question whether we should be expecting new highs or lows. Let’s hop on the charts.
BITCOIN
BTC did not manage to reach higher levels in the past 48 hours and in fact fell down to the Support box. On the bounce from the support the price touched the broken parallel channel and got rejected.
This is how we know that the channel is a valid indicator. It shows that the bullish momentum has slowed down and BTC has lost the uptrend in the short timeframe.
The Support zone has not been fully liquidated and more orders were placed after the price reached the area. This is a sign that the zone is still considered as a valid support and a bounce opportunity.
The next resistance is still located at the local top between $31 500 – $32 000. A move down to the Support area means that a bounce is out of the picture for BTC and will further liquidate the bulls. Currently, not much bullish appearance can be seen and a sharp rise is unlikely at current state of the market.
Orders have appeared both above and below current price, which means we are yet to see low volatility. Tightening once again can lead to a sharp move to one side to liquidate traders and then a reversal to the other side.
It is crucial for BTC to support $30 000 price mark, as not being able to will result a loss of a more major uptrend momentum. We are in the weekend days and sharp moves are not out of the picture. Whichever way they may be, it is not wise to base our decisions from a weekend move.
THE DOLLAR INDEX
The dollar slumped around 0.82% on Friday after signs of a less resilient U.S. labor market reduced the outlook for how long the Federal Reserves will keep interest rates higher.
This move puts the Dollar at a vital place to continue uptrend momentum. The currency has fell under the Monthly 21 Moving Average and further drop will open the possibility to see that weakness play out on the price of BTC.
It is worth to remember that the BTC usually moves contrary to the Dollar depending on the sentiment of the market. Investors see BTC as a way to invest their money when the Dollar goes down and they transfer their funds out of BTC when the economy looks better.
Monitoring the Dollar is important in the coming days in order to follow a potential correlation between the DXY and BTC.
SOLANA
SOL has further liquidated the Major Resistance area and eventually broke out of it. The next stop for the price was located in a spike to the next resistance.
Although the spike up liquidated some of the selling orders in the box, there is still selling pressure located between $22.50 – $23.40. A further move of SOL in the zone means that bulls have the power to execute the selling orders and drive the price upper.
The bulls on SOL need to put more buying orders in the previous Major Resistance to keep the healthy uptrend in place. The price rose above the resistance line on the chart and it will be difficult for the currency to keep up with it.
Currently looking to see how SOL plays out but a more major move is not to be expected. A big congratulations to those that accumulated SOL under $16 when it was stated in the analyses around 2 weeks ago.
