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Bitcoin (BTC) price has been showing impressive strength within the previous weeks and today the worth made a replacement 2020 high at $13,666.
This momentum was made alongside weakness within the U.S. dollar and lots of analysts believe that as long because the dollar remains weak, Bitcoin and other safe-haven assets will had best .
However, as Bitcoin shows strength, altcoins are failing to imitate and most altcoins are selling off against BTC. Bitcoinâ€™s dominance rate has been rising within the previous weeks and this shows that the marketâ€™s momentum is predicated around Bitcoin.
The weekly chart shows a transparent resistance zone between $13,500-$14,250 because the next big hurdle for the markets.
The price of Bitcoin broke through the $11,600-$12,000 barrier because the crucial barrier for further upward movement. This breakthrough caused the worth to continue rallying toward subsequent hurdle, which is between $13,500-$14,250.
Itâ€™s unlikely to anticipate a clear breakthrough in one-go as itâ€™s the primary test of this resistance zone, but the general weakness of the dollar is signaling that the worth of Bitcoin could only run higher.
U.S. dollar weakness is propelling the Bitcoin rally
The U.S. Dollar Currency Index (DXY) is currenlty showing significant weakness after the last test of the 94.6 points level was instantly rejected.
This rejection caused DXY to sink further. More importantly, since the rejection occurred on Sept. 24, Bitcoinâ€™s price began to rally.
This rally increased the worth of Bitcoin by $3,000 because it rallied from $10,500 to $13,500. The correlation between DXY and Bitcoin has increased since the March crash and this is often an inverse correlation.
If the dollar holds the 92.50 area for support, thereâ€™s a possible likelihood of a reversal on the worth of Bitcoin also . this is able to mean a correction within the crypto markets, which isnâ€™t bearish in the least .
Total market cap still faces resistance
The crypto total market capitalisation is lagging behind Bitcoinâ€™s strength, as BTC is that the just one showing strength recently. this suggests that altcoins are seeing a selloff in their BTC pairings, further showing that Bitcoin is currently more robust than altcoins.
Currently the entire market capitalisation is during a massive resistance zone, because the $400-$410 billion level may be a crucial pivot.
A breakthrough during this resistance zone would mean continuation to $520-$530 billion is probably going to occur.
A rejection here would mean an extra range-bound construction, through which the $280-$300 billion areas may be a significant support zone to carry .
Potential scenario for Bitcoin
The primary pivot for Bitcoin immediately is whether or not it can hold the $13,000-$13,200 area for support. If that area warrants support, then the recent breakout canâ€™t be classified as deviation above the range high.