Bitcoin analysts eye weakening US dollar as BTC price fights for $17K

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Bit­coin (BTC) bulls attempt­ed to retake $17,000 into the Dec. 4 week­ly close as volatil­i­ty looked set to return to the market.

BTC/USD 1‑hour can­dle chart (Bit­stamp). Source: TradingView

Bollinger Bands demand BTC pricevolatility

Data from Coin­tele­graph Mar­kets Pro and Trad­ingView showed BTC/USD criss­cross­ing the $17,000 mark — a focal point through­out the weekend.

With macro cues still to come, Bit­coin looked for cat­a­lysts as signs of volatil­i­ty crept into low timeframes.

Among those eye­ing a poten­tial break of the sta­tus quo was pop­u­lar trad­er Cheds, who not­ed that the Bollinger Bands volatil­i­ty indi­ca­tor was flash­ing on the 4‑hour chart.

Bollinger Bands con­strict­ing sig­nals that volatil­i­ty is due soon, and on the day, 4‑hour chart bands were at their nar­row­est since Nov. 27 — just before BTC/USD gained $1,000.

BTC/USD 4‑hour can­dle chart (Bit­stamp) with Bollinger Bands. Source: TradingView

Fel­low trad­er Cryp­to Tony mean­while stayed put on his short-term BTC price the­o­ry.

“Sim­ply no change over the last few days,” he told Twit­ter followers. 

“We are grind­ing more into the EQ / mid range, but i would­n’t be sur­prised to see a wick up to form an SFP and back down.”

BTC/USD anno­tat­ed chart. Source: Cryp­to Tony/ Twitter

Pre­vi­ous­ly, Cryp­to Tony flagged $21,500 as a tar­get to aim for if bulls were to take con­trol and change the trend.

U.S. dollar index reverses relief bounce

The com­ing week mean­while looked increas­ing­ly impor­tant for the U.S. dol­lar and, by exten­sion, risk asset performance.

Relat­ed: Bit­coin min­er out­flow ratio hits 6‑month high in new threat to BTC price

Already at its low­est lev­els in five months, the U.S. dol­lar index (DXY) looked decid­ed­ly bleak at the end of the pri­or week’s trading.

A bounce to 105.6 on Dec. 2 reversed almost entire­ly through the day, DXY fin­ish­ing on 104.5.

For tech­ni­cal ana­lyst Gert van Lagen, it was all part of the plan, with bear­ish DXY sig­nals appar­ent even in November.

“Swift bear­ish con­tin­u­a­tion would be nor­mal here,” he wrote in analy­sis on Nov. 23 to which he returned over the weekend.

U.S. dol­lar index (DXY) 1‑hour can­dle chart. Source: TradingView

“Cor­rec­tion ongo­ing,” trad­ing resource Stock­money Lizards added about DXY performance.

The views, thoughts and opin­ions expressed here are the authors’ alone and do not nec­es­sar­i­ly reflect or rep­re­sent the views and opin­ions of Cointelegraph. 



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