September 12, 2022 11:34:20
Bitcoin continues the upside momentum that begins on September 7. Since then the price has appreciated nearly 22% and finally managed to cross above $22,000. A risk-on mood helped the riskier assets. Investors await U.S inflation data and assess an upgrade of the Ethereum blockchain ahead of the merger.
The flagship currency scales higher by as much as 3.3% at the beginning of the week. Ethereum lagged behind in today’s session.
A weaker U.S dollar majorly sponsors the move. The retracement started in the previous week after the greenback touched the 24-year high above 110.00.
Mixed signals from the Federal Reserve officials put the break on the one-sided move in the dollar. The U.S. Fed decision is due this month. Further, the market is geared up for a 75bps rate hike. Any variation in the expectation could weigh on the prospect of the greenback.
In contrast, the Bitcoin Fear and Greed Index fell one point from the previous session of 26 to 25. This indicates extreme fear in the market.
In conclusion, traders should wait for more confirmation before placing aggressive bids.
BTC/USD aims for more gains
The bearish trend line from the highs of $25,193 acted as an upside barricade for the bulls. However, on September 10 the price breached the bearish trend line, indicating the emergence of buying pressure.
Further, the price is comfortably placed above the 21-day exponential moving average at $20,470.
Currently, the price hovers near the critical resistance level, and the formation of green candlestick points to a bullish bias.
The price could move toward $25,000 in the short term.
However, if the price tests the trend line and breaks below it. Bears could push $19,500.
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