Crypto analyst Jason Pizzino believes that Bitcoin‘s market structure indicates the start of an upward trend. The basis for this expectation is the US Dollar Index (DXY), which he evaluates as approaching a resistance level.
Bitcoin Marks a Critical Level: $28,400
Highly followed crypto analyst Pizzino states that in the recent strategy session, BTC‘s market structure indicates the start of an upward trend, and if the price convincingly settles above the $28,400 level, there will likely be a stronger upward movement:
For now, the $28,400 level is a key level. It seems like an attempt to show strength upward, similar to what has been happening since the lowest level in September. The only thing that could disrupt this is, of course, the market falling to key support levels. The nearest key support level here is around $27,200, and if the price retraces and retests this level, the painful process may continue a bit longer.
Expecting DXY to Rebound from Level 107
Pizzino expects the rebound of the US dollar, measured against a basket of other major foreign currencies, indicated by DXY, to trigger an upward movement in Bitcoin. As the analyst points out, a weaker, weaker US dollar generally indicates a strengthening of risky assets like Bitcoin.
The analyst expects DXY to start moving downward after rebounding from around the Fibonacci 50% retracement level between the highest and lowest levels of its recent swing, which is around level 107:
Respecting trends is essential. The important resistance level that could cause a reversal of the trend in the coming days, weeks, or months should be carefully monitored.
So, you need to look at DXY like a trader. The trend is still upward, but we are currently facing some resistances in smaller, shorter upward movements. This probably indicates that at least some of the energy has been exhausted in the short term. If DXY rises above 107 and consolidates, it may reach the $109 to $110 level.
There is enough suitability for DXY to potentially move upward, but for now, there is significant resistance at the 50% Fibonacci level.
