According to crypto analyst Jason Pizzino, Bitcoin’s (BTC) market structure currently suggests an upward trend is currently underway.
In a new strategy session, Pizzino tells his 290,000 YouTube subscribers that if BTC can convincingly settle above the $28,400 mark, a strong upside is likely to occur afterward.
“$28,400 is that key level, but it looks like as long as this market continues to hold… which it has done since the September low, as this continues, it looks like this is the start of a new trend to the upside . Of course, the only thing that will break this is if the market collapses to key support levels. So far, that’s around the $27,200 level, which would lead to it coming back and testing those lower prices.
“I think if we get to roughly $27,200… that could send things south a little bit.”
Pizzino says a weakening dollar index (DXY), which measures the US dollar against a basket of other major foreign currencies, would add fuel to BTC’s fire if it were to collapse. A weaker dollar often signals strength in risky assets like Bitcoin.
He says DXY could turn lower after a clean rejection around the 107 level, which is the 50% retracement level between the last swing high and low.
“You have to respect the trend, but we can start to look at areas of significant resistance that could trigger a reversal in the coming days, weeks or months.
So we have to play this like a trader. The trend is still up, but we are currently seeing some resistance on smaller, shorter moves to the upside, meaning you may see some of the energy run out, at least in the short term. If you see the US dollar break above 107 and consolidate. 109 to 110 are the levels we’re looking at…
There is still potentially some room to move to the upside, but for now we see some resistance at that 50% level.”
At the time of writing, Bitcoin is worth $27,907, while DXY is trading at 106.29 points.
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Generated image: Midjourney