“You can never cross the ocean until you have the courage to lose sight of the shore.” - Christopher Columbus
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BTC’s consolidation around the $52k level indicates a strong momentum-driven market, suggesting a potential breakout to the upside in the near future. Sideways movement in the short term could provide a sense of comfort for traders, possibly leading to a bullish breakout as momentum builds.
A pullback towards the $47.5k level is seen as a significant support area, backed by previous resistance-turned-support dynamics and the convergence of the 20-day exponential moving average (EMA). On the upside, targets include $55k and $60k, with the recent boost from the Wall Street ETF likely to fuel further retail investor interest rather than significant institutional investment.
Anticipation for the Fed’s easing cycle has shifted to June from March, influenced by factors such as declining retail sales and rising jobless claims, raising concerns about a possible recession. The strength of DXY and BTC at the same time can be explained by the positive correlation both have at the moment with the stock market.
DXY is trending higher but has encountered struggles since breaking out to the upside on February 13. Despite reaching 104.963, its highest level since November 14, the index's inability to sustain the upward momentum suggests the move was driven by short-covering rather than new buying.
BTC broke the downtrend resistance and reclaimed the December 2021 Weekly Resistance key level, resulting in a weekly close above $52k, indicating potential support at this level. The current heatmap shows the biggest area of liquidity between $53k to $53.4k, which may attract the price in the coming hours. If the $52k level is lost, the $50.5k to $50k range becomes crucial support, with liquidity present on both sides, allowing for movement in either direction.
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