For the time being, Bitcoin has peaked at $ 20.344 and other cryptocurrencies have followed its rise. As a result, total cryptocurrency market capitalization has returned to the gates of the $ 1.000 trillion fundamental threshold, at $ 970 billion at the time of writing, after gaining around $ 50 billion since yesterday.
Bitcoin is back above 20.000 dollars despite the difficulties of the stock market
Note that the rebound in Bitcoin's price started yesterday as equities dropped to new lows of 2022, which tends to question the alleged correlation between BTC and US equities. Indeed, it should be remembered that yesterday the financial markets experienced a situation of widespread panic, with the soaring of the dollar and the collapse of the pound.
However, we now see some relief, with US equity futures rising and European equities also rising, ending a three-session losing streak.
Furthermore, the dollar is falling, which eases the pressure on Bitcoin. The US dollar index stands at 113,72 as of this writing, down from a 20-year high yesterday at 114,18.
The continuation of the rebound of Bitcoin depends on the continuation of the stagnation phase of today's markets. Investors will be impacted by a number of events this week, including US Durable Goods Orders at 14:30 PM, followed by US Consumer Confidence and New Home Sales at 16:00 PM.
Good numbers would suggest to the market that the Federal Reserve (Fed) has a free hand to continue raising rates, a bearish factor for Bitcoin. Conversely, worrying data would suggest the possibility of a slowdown in Fed policy tightening, which could help BTC / USD extend its rally.
However, macro news won't be the only factor driving Bitcoin in the next few hours. BTC / USD is approaching a critical technical threshold and its reaction could be the key to what will happen next.
Important bullish signal in sight for BTC / USD
Bitcoin is actually making contact with a long-term downtrend line extending from the highs of November 2021.
A clear break above this line would represent a major bullish signal, which could mark the start of a rally towards a quotation of 25.000 dollars.
However, the 100-day moving average, currently at $ 21.242, may offer resistance before then. On the downside, a return of BTC / USD below $ 20.000 would be a negative sign. In this case, last week's lows just above $ 18.000 marked after the Fed meeting and the yearly low around $ 17.600 will be the first potential supports to look out for.
