(Kitco News) - Global financial markets breathed a sigh of relief on Wednesday as a pullback in the surging U.S. dollar brought the welcomed sight of green to a wide range of assets, including cryptos and stocks.
The 10-year Treasury note temporarily topped 4%, its highest level since 2008, but proceeded to pull back to around 3.71%, which sent asset prices off to the races. At the close of markets in the U.S., the S&P, Dow and Nasdaq all finished in the green, notching gains of 1.97%, 1.88% and 2.05%, respectively.
Data from TradingView shows that as the DXY was retreating, the price of Bitcoin (BTC) rallied from a low of $18,560 to an intraday high of $19,667, recovering about half of what was lost the day prior after the market violently sold off and plunged the top crypto back below $20,000.
BTC/USD 4-hour chart. Source: TradingView
Bulls shouldn’t assume that it’s up only from here; however, as senior Kitco technical analyst Jim Wyckoff noted that “bears still have a slight overall near-term technical advantage.”
In order for that to change, “A move in BC prices above the September high would empower the bulls to suggest a price uptrend developing,” Wyckoff said, while “a move below the September low would recharge the bears and restart a price downtrend.”
Possible scenarios moving forward
Insight into what it might look like if bulls take control and push BTC higher was offered by independent market analyst Michaël van de Poppe, who posted the following tweet suggesting that if bulls can hold support at $19,300, Bitcoin price could soon retest resistance at $20,700.
#Bitcoin price breaks and flips $18.9K.
— Michaël van de Poppe (@CryptoMichNL) September 28, 2022
Continuation, in which the weak $DXY and drop on the yields due to BoE starting QE again, resulting into strength on #Bitcoin.
I'd prefer to see $19.3K hold as support, if that is the case, then we finally can test $20.7K and $22.5K. pic.twitter.com/zLhCz0MKGV
While Poppe is holding out hope that BTC could continue higher from here, not everyone is as optimistic. That includes market analyst and pseudonymous Twitter user il Capo of Crypto, who posted the following tweet outlining two (negative) scenarios that he sees resulting in Bitcoin falling into the $14,000 - $16,000 range.
$BTC - The only chart you need
— il Capo Of Crypto (@CryptoCapo_) September 28, 2022
2 possibilities:
-Quick scam pump to 20000-20500 and nuke afterwards.
-Clean break of the 18400-18700 support and straight dump to the main target.
Both possibilities lead to the same target of 14k-16k. pic.twitter.com/U20lh4tFCl
Only time will tell which of the above scenarios tracks most closely with reality. For those who don’t want to deal with the hassle of trying to time the market perfectly or trade in and out of positions, market analyst Rekt Capital provided the following insight to provide a little perspective:
“As a long-term BTC investor, negative catalysts serve a very specific purpose: To bring BTC prices to the lowest levels possible for accumulation via dollar-cost-averaging. Negative catalysts don't last, but filled buy orders do (as long as you HODL).”
Altcoins trend higher
The altcoin market followed Bitcoin’s lead in climbing higher on Wednesday, with the vast majority of tokens in the top 200 seeing green while some of the recent gainers experienced slight pullbacks.
Daily cryptocurrency market performance. Source: Coin360
The biggest gainers on the day include a 14.84% increase for Velas (VLX), a 14.58% gain for Reef (REEF), and a 14.15% price climb for Helium (HNT).
The overall cryptocurrency market cap now stands at $942 billion, and Bitcoin’s dominance rate is 39.8%.
