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Bitcoin price has been able to hold its own this weekend, pointing to a potential bullish week for the nascent asset class. The cryptocurrency has been stuck in a tight range for the past month, unable to reclaim territory north of $20,000 and roll back to support.
At the time of writing, Bitcoin (BTC) is trading at $19,400 with a gain of 2% in the past 24 hours and a gain of 3% in the past week. In the crypto top 10, most cryptocurrencies are trading sideways or with small gains in the past hour as this trading session led to low-time bullish momentum across the board.
Bitcoin is gearing up for the positive, $20,500 holds the key
Today’s bullish trading session was supported by a rebound in traditional financial markets. Major US indices were able to recover from last week’s downward movement and are recovering, allowing Bitcoin and other cryptocurrencies to show some strength on lower timeframes.
The upward move may come as a surprise to many market participants who expect more losses due to the insolvency rumors surrounding Credit Suisse financial institution. The bank’s top representatives have denied the rumors and the markets seem to be pricing them upwards so far.
Analyst and trader Adam Mancini celebrated the recent bullish price action for the stock market and hinted at the possible continuation of bullish momentum. As Bitcoin and crypto continued to move along with stocks, the rally could translate into further gains for the nascent asset class.
Mancini wrote the following about the current price action for the S&P 500, and the longer implication:
Excellent follow up in #ES_F: 3635, 3670 were my targets today and 3670 just hit. Key to note: Reclaiming 3635 causes Friday to drop a big, failed failure and low signal. Bulls must persevere, however. 3705 next, 3635-45 should now hold support.
Stars aligned for a Bitcoin and crypto rally?
In support of the bullish position for Bitcoin, data from Material Indicators shows a spike in buying pressure from all investors, retailers and whales. If these investors continue to bid on the price action, BTC’s price could extend its bullish momentum.
However, as the chart below shows, there is significant demand (sell) liquidity for Bitcoin above its current level. This sell order can limit any short rally and prevent the cryptocurrency from recovering higher levels.
Additional data from analyst Justin Bennett indicates that the US dollar remains weak throughout today’s trading session. As NewsBTC has reported, the bullish price action of the DXY Index (US Dollar) has taken its toll on risky assets, such as Bitcoin and stocks.
As the currency prepares for further losses, the emerging asset class could potentially bounce further, reaching the top of a channel presented by Bennett. The analyst claims that as long as Bitcoin remains above $18,700, the cryptocurrency has a chance to climb all the way up to $26,000 in the coming weeks.
Nothing changes. https://t.co/ICHbqXGbQr
— Justin Bennett (@JustinBennettFX) October 3, 2022