As the US dollar prints a 'death cross,' Bitcoin could reach $25K by March 2023
Bitcoin's price recovery in 2023 has seen little institutional buying, raising doubts about whether BTC will rise above $25,000.
As the US dollar prints a 'death cross,' Bitcoin could reach $25K by March 2023 — analysis
MARKET EXAMINATION
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Based on a combination of bullish technical and macro indicators, Bitcoin BTC tickers down $21,017 has the potential to extend its ongoing price recovery to $25,000 by March.
Bitcoin's price has exited the descending channel range.
To begin, Bitcoin's potential to reach $25,000 stems from its exit from a dominant descending channel range.
Notably, the BTC price broke out of the range late last week, coinciding with an increase in trading volumes. The cryptocurrency's upward movement also pushed it ,above its resistance confluence
which includes a psychological price ceiling of $20,000 and its 20-week exponential moving average (20-week EMA; the green wave), as shown below.
1-week candle chart of BTC/USD (Coinbase). TradingView.com is the source.
The breaking of three resistance levels with high volumes demonstrates traders' belief in an extended price rally. If this occurs, Bitcoin's next upside target appears to be its 200-week EMA (the yellow wave) at around $25,000, representing a 20% increase from current price levels.
The dollar makes a "death cross."
The bullish technical outlook for Bitcoin appears against the backdrop of a relatively weaker US dollar, which is down due to expectations that the Federal Reserve will stop raising interest rates in favor of lowering inflation.
Since March 2020, the two assets have moved inversely to each other. According to TradingView, the daily correlation coefficient between Bitcoin and the US dollar index (DXY), a barometer of the greenback's strength versus top rivaling currencies, was -0.83 as of Jan. 16.
The correlation coefficient between BTC/USD and DXY. TradingView is the source.
According to a traditional technical setup, the dollar will continue to lose ground.
The "death cross" occurs when an asset's 50-period moving average falls below its 200-period moving average. The death cross represents the dollar.
