Market analyst Michael van de Poppe said the present resistance level of the US dollar and stocks could lead to a fresh boost to the Bitcoin in the coming weeks.
He said Bitcoin may get relief and rally around $11,000 as there are some concerns over the US dollar and stock market recovery. This is coming with the market been slightly stretched with stimulus into the economy.
He revealed this in a tweet yesterday as he stated that macro movement could lead to the strengthening of the BTC/USD.
Futures bounce back significantly in the U.S.
Europe also bouncing back up.
Might signal a slight relief on $BTC as well towards the area of $10,600-10,800.
— Crypto Michaël (@CryptoMichNL) September 9, 2020
The price of BTC may reach the first rebound
A rebound is likely going to follow after testing periods for the BTC, as it has gone below the $10,000 support level since Friday. This could be following the long-term trend, with serious anticipation of an upsurge in the Bitcoin price movement due to a shift in the macro settlement.
“Futures bounce back significantly in the U.S. Europe also bouncing back up,” Van de Poppe stated. He further said it may signal a little relief on BTC towards the $10,00 to $10,800 mark.
Initially, Van de Poppe pointed out that bitcoin has not reached the height of its bearish streak yet, as it could still go lower than the recent lows to consolidate at $9,500.
There will also be a gap fill if Bitcoin rises to $10,600, which is a point the top cryptocurrency has appeared for the past few days. As it stands, BTC/USD has not managed to rise higher than the $10,400 level.
Everyone was not having high hopes of the short-term prospects of the coin. But while highlighting the recent chart action, top trader Peter Brandt described both Ether (ETH) and BTC as “flagging.”
Money printing and inflation may strengthen the index
Although Brandt has been disappointed in the progress of Bitcoin since April, the USD has kept giving bearish signals to market commentators even with the recent strength.
The 15 percent drop of Bitcoin last week coincided with an uplift of the US dollar index. But this strength may be undermined with a mixture of money printing and inflation policies hovering around the corner.
Based on the report of forex broker FxPro, the dollar needs to reach higher levels against major currencies such as the Swiss franc, pound sterling, and the euro to exit the current breakdown.
Yet, there will be a weakening pattern with short corrections without the accelerated growth of the dollar, FxPro concluded.