June 24, 2021

Bitcoin Weekly Outlook: Market Looks to Capitalize Wall Street Chaos

3 min read

Bitcoin prices ended up the recently slightly greater despite a rebound in the US dollar. The flagship cryptocurrency ended 2.63 percent greater on the Coinbase exchange for the week.

Meanwhile, the brand-new weekly session began on a favorable outlook. Bitcoin was up 1.47 percent, trading slightly above its short-term assistance level of the 20-day rapid moving average of $33,461. Without any big events in view for the next 5 days, the cryptocurrency anticipates trading on emotions led by long-lasting basics and short-term technicals.

Other than there is simply one catch: the ongoing mayhem on Wall Street.

Bullish Dollar, Conflicted Bitcoin

The last two weeks saw day traders mobilizing other day traders to purchase a number of stocks, mainly especially GameStop and AMC Entertainment, that were heavily shorted by rich hedge funds in the United States. The retail-led, revenge-buying frenzy led big investment companies to close their bearish positions at heavy losses.

That assisted the United States dollar log a rebound, restricting gains in the riskier safe-haven markets, including Bitcoin. Nevertheless, on Thursday, the cryptocurrency surged 10.14 percent to $34,000, followed by another benefit push towards $39,000 in the next everyday session.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin trades inside a bullish Rising Wedge technical structure. Source: BTCUSD on TradingView.com So it appears, Bitcoin’s rise accompanied Robinhood halting GameStop and AMC stock trading on its platform. It likewise followed Elon Musk’s open endorsement of the cryptocurrency on its Twitter bio, which, as numerous analysts said, was a metaphorical action to huge companies stopping small traders from wagering in a free market.

“In retrospection, it was inevitable,” Mr. Musk tweeted.

On the other hand, day traders tried to take advantage of the Wall Street mayhem in the cryptocurrency sector by asking neighborhoods to push the Dogecoin rate higher. At one time, the DOGE/USD exchange rate increased almost 1,300 percent higher on the Binance exchange.

This week, the frenzy is aiming to do the exact same in the silver markets. That has required some traders to cover their brief positions in the white metal’s mining shares and exchange-traded funds. Their losses, paired with the Federal Reserve’s warning about a slower-than-expected development in the US economy, anticipate to further push the dollar’s safe-haven appeal.

us dollar, us dollar index, dxy, bitcoin

< img aria-describedby="caption-attachment-146166" loading="lazy" class="size-large wp-image-146166" src="https://bitcoinist.com/wp-content/uploads/2021/02/rZUveyJf-980x568.png" alt="us dollar, us dollar index, dxy, bitcoin" width="980" height="568"/ > United States dollar index increases as demand for safe-haven boosts in the middle of the Wall Street frenzy. Source: DXY on TradingView.com

That, in turn, could keep Bitcoin from logging optimum gains.

Craze Ahead?

Mr. Musk’s recommendation supplies Bitcoin a concrete rate floor above $30,000. Meanwhile, one can not turn down the possibilities of day traders’ army trying to manipulate other cryptocurrencies into growing greater, as they did with Dogecoin. The concern remains: will the craze hit the Bitcoin market, eventually?

A push above the Falling Wedge resistance trendline, supported by a boost in volume, might have traders view short-term upside targets above $40,000. A more push and Bitcoin could reach another all-time high by crossing over $41,986.