Bitcoin price of $ 20,000 is possible again if the bulls overcome this zone of resistance.
The Bitcoin ( BTC ) price has shown impressive strength over the past few weeks. Today the price hit a new 2020 high of more than $ 13,600.
One of the reasons for this momentum was the weakness of the US dollar. Many analysts also believe that as long as the dollar remains weak, Bitcoin Blueprint and other safe haven assets will do well.
However, while Bitcoin is showing strength, Altcoins cannot follow it and most Altcoins are doing worse than it is. Bitcoin’s dominance has increased in the past few weeks. This shows that the dynamics of the market are based on Bitcoin.
Traders expect resistance between $ 13,500 and $ 14,000
The weekly chart shows a clear resistance zone between 13,500 and 14,250 US dollars. That is the next big hurdle for the markets.
The Bitcoin price broke the barrier between $ 11,600 and $ 12,000, which was considered a crucial hurdle for another upswing. That breakthrough ensured that the price continued to head towards the next hurdle, which is between $ 13,500 and $ 14,250.
A breakthrough is unlikely to work right away as this is the first time this resistance zone is tested. But the general weakness of the dollar signals that the Bitcoin price could only rise higher.
US dollar weakness is driving Bitcoin rally
The US Dollar Currency Index (DXY) is currently showing significant weakness, having turned down from 94.6 points.
That rejection caused the DXY to decline further. The Bitcoin price has rallied since being rejected on September 24th.
With that rally, Bitcoin rose by $ 3,000. It rose from $ 10,500 to $ 13,500. The correlation between the DXY and Bitcoin has increased since the March crash. This is a reverse correlation.
If the US dollar holds the support at 92.50, Bitcoin could reverse. That would mean a correction in the crypto markets that is by no means negative.