The failure of the bears to sink Bitcoin’s (BTC) price below $25,000-support ignited buying interest last week. The positive momentum picked up further at the start of the new week and buyers are trying to sustain Bitcoin’s price above $27,000.
Market participants seem to be buoyant on expectations that the Federal Reserve will not hike rates this year. The CME FedWatch Tool shows a 58% probability that the rates will remain at the current levels even in the December meeting.
That could be one of the reasons why the strength in the United States dollar index (DXY) has not adversely impacted the price of Bitcoin. However, traders need to be careful as the last ten days in September are known to favor the bears. According to the Carson Group, the S&P 500 Index (SPX) has been positive on average only for two days between Sep. 20 and 30 since 1950.
Could Bitcoin and select altcoins extend their recovery further or will bears pull the price lower? Let’s analyze the charts to find out.
The S&P 500 Index broke above the moving averages on Sep. 14 but the bulls could not keep up the momentum and clear the overhead hurdle at the downtrend line.
The bears sold aggressively at the downtrend line and pulled the price back below the moving averages on Sep. 15. Sellers will try to further strengthen their position by pulling the price below the next support at 4,030. If they do that, it will open the doors for a potential retest of the vital support at 4,325.
If bulls want to gain the upper hand, they will have to quickly drive the price above the downtrend line. There is a minor resistance at 4,542 but if this level is crossed, the index could sprint toward 4,607.
The U.S. dollar index has continued to grind higher in the past few days butRead more on cointelegraph.com