BTC Weekly Outlook Signals Mild Correction Before The Holidays

The BTC weekly outlook signals mild correction before the holidays with the coin being up by 22.4 percent, logging the best week since April 2019. In our latest bitcoin news, we take a closer look at the price analysis.

The number one cryptocurrency ascended to the lifetime record level from $24,300 as the traders asserted there’s growing prominence as a safe-haven asset among institutional investors. The sentimental shift towards BTC happened at some of the most traditional hedging assets which reflected the medium-term bearish outlook including the US dollar.

Factors like the Brexit optimism, the COVID vaccine launch, and the Federal Reserve’s outlook along with the US stimulus bill, continued to pressure the dollar lower. The US dollar index which tracks the dollar’s performance against the multiple other foreign currencies dropped below 90 for the first time since April 2018. Many of the traders raised their bids for BTC while anticipating the dollar value will decrease further in the medium-term.

They treat crypto as an anti-fiat asset given the accurate negative correlation with the dollar since March 2020’s global market rout with the pair increasing by more than 500 percent since then.
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The US dollar index on the other hand dropped by 12.68 percent. Jerome Powell stated that he aims to continue the bond-purchasing program while the US Congressional leaders reached a deal on their $900 billion stimulus package as they both put a lot of pressure on the US dollar. This, in turn, prompted BTC traders to hold gains above the daily support levels above $23,000.

However, the BTC weekly outlook signals correlation is upcoming before the holidays but there are no significant events and data releases on the economic calendar that could influence the BTC traders to go long or short in the trades. The Christmas holiday season will most likely keep the whales busy. BTC could try to correct the “overbought” levels as seen through the weekly Relative Strength Indicator and the level is near the 88 level which reflects an overheated market. The first-short-term support is near the $23,318 but breaking below this level could have BTC test the following support.

In the meantime, if the dollar drops lower, it could lead to the BTC RSI increase further into the overbought territory. This means that it could also try to hit a new all-time high followed by the possibility of hitting a record high into unchartered territory.