20/10/2021 Market analysis

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Bitcoin continues in its consolidation phase close to the all-time high of May 2021 and the current price action suggests that an update of the All Time High is now imminent.

At the time of writing, the main cryptocurrency is trading around $63,900.

Market capitalization has risen to $2521 billion, as has BTC dominance near 48%.

The dollar index showed the first signs of weakness, falling below 94 points.

On the crypto market front everything is going well, with bitcoin updating its local high at $64500 to within $500 of its all-time high.

In the chart below has been identified the golden cross plotted with moving average 100 and 200, which in theory is an indicator that gives us information on the start of a bull market (for more information about this I invite you to read this article investopedia).

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At the breakout point we will once again be in a "price discovery" phase and most likely bitcoin will momentum test the $70,000 area as there is no resistance before that threshold.

Yesterday, the New York Stock Exchange (NYSE) opened trading on the Bitcoin ETF Proshares and the first day of trading saw volumes of $1 billion.

Against this backdrop, if the Dollar Index continues to fall it will undoubtedly facilitate a massive Bitcoin rally.

From a short-term trading perspective, if Bitcoin fails to break the all-time high on the first try, then we should expect a test of local support in the $62000-61000 region.

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