U.S. dollar downturn helps Bitcoin bulls before $50,000 BTC price showdown

Bitcoin (Bitcoin) Challenged $46,800 on August 11, as the weaker U.S. dollar added to the bullish momentum.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

“Aim at US$50,000”?

Data from Cointelegraph Markets Pro and Transaction view It shows that BTC/USD hit a high of US$46,787 on Bitstamp on Wednesday, which is a bit short of the peak of the previous day.

Just after the voting day of the US Infrastructure Act ended and ultimately failed to push the market, Bitcoin showed no signs of bearishness when it returned to the door. Main resistance Pricing starts at US$47,000.

The performance of the U.S. dollar on the day after the bill provided another potential catalyst for the rise. The downward trend of a stronger dollar is usually accompanied by the benefits of a wider range of cryptocurrencies.

At the time of writing, the U.S. dollar currency index, which measures the U.S. dollar against a basket of 20 trading partner currencies, is reversing the pre-voting gains and returning to below the 93 mark.

Previously, Cointelegraph lead The popular trader Crypto Ed, who followed the local DXY peak of 94 before falling, provided Bitcoin and altcoins with room for soaring.

“BTC range: get out of highs, get out of lows,” Twitter posts Read on Wednesday.

“We are gone. Still aiming at 50k.”

The dollar currency index (DXY) 1-day candlestick chart. Source: TradingView

Strong support and strong resistance

Nonetheless, the potential obstacle to further gains still exists in the form of an impressive selling wall of $47,000.

related: Bitcoin Technology: Why BTC price breaking through the resistance level of 48,000 USD is the key to hitting a new all-time high

On the other hand, a Continued buying trend Retail and institutional investors ensure that the supply of Bitcoin has been tightening at the level of $29,000 and above.

Another theory It shows that Chinese whales, frightened by the collapse of the miners in May, are now re-entering the market.

“Earlier this year, whenever it was maintained at around $45,200 as support, BTC would rebound strongly,” trader and analyst Rekt Capital Add to.

“Yesterday, BTC successfully recovered the support level of about $45,200.”

BTC/USD trading positions (Binance) as of August 11. Source: Material Indicators/ Twitter