On October 4, the trading price of Bitcoin was able to take a trip over the $20,000 barrier. However, the traders were expecting resistance as the price of BTC would go over the $20k mark.
Low Value of the Dollar Helped Bitcoin
According to the latest data, the trading price of the BTC/USD has recorded a significant surge in a 24-hour window.
The data from TradingView shows that the trading value of the BTC/USD pair has surged more than 5% in the past 24 hours.
The Pair Shook Off Macroeconomic Concerns
Although macroeconomic concerns have been around in the market, the BTC/USD pair has continued ignoring all of that.
Despite the downfalls, the pair has continued moving in the upward direction, performing the same way since the beginning of the week.
The global economy has been in a major pitfall due to the Russia-Ukraine war conflict as well as the trouble at Credit Suisse. They have been causing a huge problem for the global economy, slowing down its performance.
Short-Term Analysis
The short-term analysis suggests that the trading price of Bitcoin may have the ability to record a significant push. The trading price of Bitcoin may be able to rise over the $21,000 barrier.
Despite the buying efforts of the bulls, the $20,500-$21,000 range still remains a sell zone. This means that there are higher chances of the bears taking control of the trend at this range than the bulls.
Even the most experienced traders and market analysts have been suggesting the same about the Bitcoin trend. They have all asked the investors not to get too carried away with the bullish trend.
They need to be mindful of the sell zone and not go all in buying Bitcoin. This could eventually make things worse for the bulls if the bears start selling Bitcoin on a larger scale.
Bitcoin has escaped a Major Possibility of Liquidity
The analysts have also stated that the price of Bitcoin rising over the $20k barrier was a much-needed attempt by the bulls. If this had not happened, then the price of Bitcoin could have fallen tremendously.
Investor is constantly losing their confidence in Bitcoin and if it had remained below the $20k level, major liquidity could have taken place.
This could have led to a great selling spree for Bitcoin, pulling its trading price to multi-week lows.
Economic Data may Support Bitcoin
As more data keeps coming back surrounding the economic downtrend, more investors would continue resorting to Bitcoin. As the price of USD is constantly declining, traders are moving to Bitcoin.
This activity could actually help push Bitcoin’s price over the $21,000 barrier and push it into a higher resistance zone.