BTC price action sees its highest levels since the start of October on the back of a broader risk asset rally.
Bitcoin (BTC) spiked above $20,000 on Oct. 25 as risk assets benefited from new U.S. dollar weakness.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Bitcoin taps three-week highs
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting highs of $20,191 on Bitstamp.
The move came in tandem with rising United States equities, these in turn buoyed by a declining U.S. dollar, which lost traction against major trading partner currencies on the day.
With that, Bitcoin saw its first trip above the $20,000 mark since Oct. 7.
“Finally, the volatility will kick in,” Michaël van de Poppe, founder and CEO of trading firm Eight, reacted.
“Bitcoin is ready for that relief run. Long and strong.”BTC/USD 1-day candle chart (Bitstamp). Source: TradingView
Trader and analyst Il Capo of Crypto meanwhile flagged BTC outperforming altcoins in terms of gains, albeit with no end in sight as yet.
“There’s fuel to keep going,” he tweeted.
Data from monitoring resource Coinglass meanwhile showed the extent to which the market had been short on the day.
Short position liquidations for Bitcoin alone topped $165 million on the day, a multi-month high, with the tally still increasing at the time of writing.
Cross-crypto short liquidations amounted to more than $400 million.
Crypto liquidations chart. Source: Coinglass
Dollar puts up a fight after swift losses
Following the action, analytics service Material Indicators meanwhile tracked shifting support and resistance on the Binance order book.
Related: Analyst puts Bitcoin price at $30K next month with breakout due
The $20,000 zone had been marked by a cluster of sell orders totaling in excess of $110 million, bulls managing to make a considerable dent with the impulse.
“FireCharts shows the remaining $83M of the $112M BTC sell wall we saw this morning was just moved up,” it confirmed alongside a chart showing a heat map of trades.
BTC/USD order book data (Binance) chart. Source: Material Indicators/ Twitter
In a potential knock to crypto, however, the U.S. dollar index (DXY) showed signs of recouping its daily losses at the time of writing, attempting to clinch 111 as support.
“$DXY is finally breaking down today. Expecting bids in the 109.50-110 range,” Justin Bennett, founder of crypto education platform Crypto Academy, commented.
U.S. dollar index (DXY) 1-hour candle chart. Source: TradingView
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