Home Cryptocurrency Bitcoin price focuses on $55K as bulls ignore a surging US dollar

Bitcoin price focuses on $55K as bulls ignore a surging US dollar

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Bitcoin (BTC) called up to levels within 10% of its all-time highs of March 10, when U.S. dollar strength failed to dampen its upward trend.

1-hour candlestick chart of BTC/USD (Bitstamp). Source: View of the shop

Resistance$56,000 is the next target for BTC.

Data from Cointelegraph Markets and TradingView followed the comeback after an overnight correction in BTC/USD on the 10th. In March, the couple is aiming for $55,000.

After hitting a two-week high of $54,500 a day earlier, bitcoin rose to $55,700 before hitting a strong band of resistance and trading lower.

This recent rebound highlights the renewed strength of the largest cryptocurrency this month, which continues to bring it within reach of its all-time high of $58,300.

A nice refrain from the $56,000 range for #Bitcoin here. So far, so good, commented Michel van de Poppe, an analyst at Cointelegraph Markets, on Twitter about the past 24 hours of action.

If the $52,000 zone holds, we will see another sideways move and a retest of $56,000. But again, the $52,000 level must be maintained to prevent further decline.

At the time of writing, there were few signs that a retest of the $52,000 limit was imminent, while the Hodlers celebrated the entry of even more institutional investors into the bitcoin race. This time, U.S. Housing Guaranty has partnered with Gemini Exchange to invest.

And another company has decided to add bitcoin to its balance sheet, according to Gemini co-founder Tyler Winklevoss.

Order book data from Binance, the largest exchange by volume, shows sellers lining up at $56,000 and higher, while solid support exists below $49,000.

BTC/USD Support and Resistance Levels (Finance). Source: Direction indicator/material switch

DXY rise saves fresh bitcoin minus

Elsewhere, March continued to offer an interesting counter trend for bitcoin traders, with the US dollar changing from an inversely correlated asset to a correlated asset.

As Cointelegraph often reports, the US dollar index (DXY) tends to cause downward pressure on bitcoin when it rises rapidly, and the reverse is also true. While this was a key feature of the market in 2020, the strength of this phenomenon is starting to wane this year.

Both DXY and BTC/USD have risen in tandem over the past two weeks.

4 hour chart BTC/USD vs DXY. Source: TradingView

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