BTC price action is seeing its highest levels since early October on the back of a broader rally in risk assets.
over $20,000 on October 25 saved as risk assets benefited from renewed US dollar weakness.
BTC/USD 1-hour candlestick (bit stamp). Source: TradingView
Bitcoin reaches three-week highs
Data from Cointelegraph Markets Pro and TradingView show BTC/USD hitting highs of $20,191 on Bitstamp.
The move came alongside rising US stocks, which in turn were boosted by the slide in the US dollar, which lost the day against major trading partner currencies.
With that, Bitcoin saw its first trip over the $20,000 mark since October 7th.
“Eventually, volatility will kick in,” responds Michael van de Poppe, founder and CEO of trading firm Eight.
“Bitcoin is ready for this relief run. Long and strong.
BTC/USD 1-day candlestick (bit stamp). Source: TradingView
Crypto trader and analyst Il Capo, meanwhile, noted that BTC has outperformed altcoins in terms of gains, but with no end in sight so far.
“There’s fuel to keep going,” he tweeted.
Meanwhile, data from monitoring resource Coinglass showed the extent to which the market was short on the day.
Short position liquidations for Bitcoin alone topped $165 million on the day, a multi-month high, and the number is still rising at the time of writing.
Cross-crypto short liquidations totaled more than $400 million.
The graph of changes in Crypto. Source: Coinglass
The dollar continues to struggle after rapid losses
After the action, analysis service material indicators tracked changing support and resistance on the Binance order book.
Related: Analyst puts Bitcoin price at $30K next month with breakout expected
The $20,000 zone was marked by a cluster of sell orders totaling over $110 million, with the bulls managing to make a significant dent in the momentum.
“FireCharts shows that the remaining $83M of the $112M BTC selling wall we saw this morning just went up,” he confirmed alongside a chart showing a heat map of trading.
BTC/USD order book data chart (Binance). Source: Material Indicators / Twitter
However, in a possible blow for cryptocurrencies, the US Dollar Index (DXY) showed signs of recovering from its daily losses at the time of writing, trying to secure 111 as support.
“$DXY finally breaks today. Expect bids in the 109.50-110 range,” commented Justin Bennett, founder of the crypto education platform Crypto Academy.
1 hour candlestick chart of the US Dollar Index (DXY). Source: TradingView
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