BTC reclaims $34K level amid the global markets crash, and managed to rise again after falling 8.5% in the previous session showing strong bullish continuation as we are reading more in our latest Bitcoin news.
The benchmark cryptocurrency hit an intraday high above $36,500, rising 21.35% from the week to date low close to $30,000 as the traders flocked back into the market and sensed short-term buying opportunities close to said local bottom. In doing so, they took the BTC/USD exchange rate about the crucial resistance level at $35,000 which was capping the pair’s gains in the overnight US session and stocks recovered and dollars slipped.
Bitcoin’s latest upside correction appeared in sync with the similar rebounds across the global stock market as the Shanghai Composite index increased by 1.4%. in the meantime, Nikkei in Tokyo and Hang Seng in Hong Kong added 0.1% and 0.8% respectively. The EU trading session got to a positive open with the pan-European Stoxx 600 rising 0.4% in early trade and the FTSE 100 Index in London adding 0.18 percent. The US futures were positive as well which points out to a profitable session after closing the previous one negatively. The gold futures increased as well by 0.34%.
At the core of the BTC and traditional markets recovery which reversed the US dollar. The dollar dropped by 0.24% in the early Tuesday session, followed by the modest rebound ahead of the London opening bell. Technically, the lower high formation on the 4-hour charts indicated a bearish continuation move. Global financial news reports that investors are weighing against the extended dollar recovery right before the US election results which put Joe Biden in control in the Senate and paving the way for $1 trillion worth of more stimulus.
Investors found optimism in the upcoming stimulus as Cesar Perez Ruiz, the CIO of Pictet Wealth Management said in a report:
“President-elect Biden has a better chance of pushing through his agenda and delivering sorely-needed stimulus and support.”
The BTC/USD exchange rate expects to undergo a breakout move since it is partially confirming an inverse head and shoulder pattern as BTC reclaims $34K level. Initially spotted by a pseudonymous analyst, this structure pertains to a bearish to bullish reversal on the charts with the price target setting above $40,000 pointing to the possibility of a strong increase again:
“Only if this inverse H&S pattern confirms for bitcoin we can see follow-through.”
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