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#1 11-10-2021 11:53:16

Admin & Trader
From: Paris - France
Registered: 21-12-2009
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BTC/USD: Bitcoin reacts to round numbers - is $60,000 possible?

BTC/USD: Bitcoin reacts to round numbers - is $60,000 possible?

The US stock market correction of September did not impress Bitcoin bulls. The price of a Bitcoin is reacting to round numbers, finding support at $40,000 and resistance at $60,000.

The main theme of the trading year is the strengthening of the USD. The dollar has appreciated against its G10 counterparts, supported by rising oil prices (the US is a net oil exporter) and expectations that the Fed will withdraw its accommodative measures.

But the US dollar's gains have not been broad-based. It may have appreciated against gold, for example, but not against Bitcoin. Bitcoin hit a 5-month high last week, unimpressed by the USD's rally. Moreover, BTC has disassociated itself from the risk-off move we saw in September. In other words, it has simply been trending higher.

One curious thing about Bitcoin is how it reacts to round numbers. The $10,000 mark has proven difficult to break, as Bitcoin has struggled to break out of the uptrend for over a year.

An upward break finally occurred, and Bitcoin didn't look back until it reached $60,000. It wavered for a few weeks, weaving between $30,000 and $40,000, but nothing more. These two levels provided solid support during the decline from $60,000 resistance, and now the price action is bullish, and another attempt at the highs should not be ruled out.

What makes Bitcoin attractive?
Investors have always tried to find the highest possible return on their investments. But in September, for example, 85% of the US high yield bond market had yields below the annual inflation rate. Moreover, real yields have followed the same pattern elsewhere.

Finally, the S&P 500 dividend yield was at its lowest level in nearly 2 decades in September. Thus, investors are willing to take on more risk (crypto markets are known for their high volatility) and bet on digital assets such as Bitcoin.

"Anything worth having is worth going for - all the way." - J.R. Ewing



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