Bitcoin price eyes $24,000 retest as US dollar dips to monthly close
Bitcoin (BTC) edged toward $24,000 at the Wall Street open on February 27 as a strong weekly close translated into further gains.
Bitcoin gains $1,000 off weekend lows
Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD is rebounding in line with US stock futures.
The pair had seen lows of $22,770 on Bitstamp over the weekend, however, these proved short-lived as the weekly candle closed above $23,500.
With stocks rebuilding strength into the new week, hopes were high that Bitcoin could continue its upward trajectory to end February on a high.
“Rejection at the crucial $23.8K level would indicate that we will have a retest of the support,” Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading firm Eight, wrote in part of a Twitter update on the day.
“If that sweep happens and we pull back, the $25,000 test is inevitable and longs are triggered.”
Popular trader Crypto Tony had similar opinions, still erring on the more cautious side when it came to the overall uptrend that lasted.
“I will long if we retake $23,750 and stay over – or I will look for short if we lose $22,900 and stay under,” he told Twitter followers.
Trading suite Decentrader also argued that stronger signals were needed before going long BTC.
“People kept longing Bitcoin while it was falling, and now the Long/Short ratio is starting to drop, the price is starting to recover a bit,” it commented.
“Still very high at 1.8, would like to see more liquidated, before a rally can really get going.”
Dollar reverses previous strength
US stocks continued to recover ground lost the week before at the time of writing, with the S&P 500 and Nasdaq Composite Index up 1% and 1.2% respectively.
Related: BTC Whale Stock Shrinks to Early 2020 Levels – 5 Things to Know in Bitcoin This Week
The US dollar index ( DXY ) meanwhile suffered, falling below the 105 mark in a boost for risk assets across the board.
“So far we have a potential fakeout above this rising wedge,” popular trader Justin Bennett wrote in part of his latest dedicated update on the index.
“Things are about to get interesting.”
Popular analyst CryptoCon, meanwhile, highlighted changes in the correlation dynamics between DXY and BTC.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
