Bitcoin Prices Fluctuate as it Reaches Important Resistance Levels

Eshan Porter
4 mins

Bitcoin prices are fluctuating a lot today as it reaches some important resistance levels.

While Bitcoin has seen some volatility today, it is still positive reaction to macroeconomic factors. However, as the weekend approaches, low levels might lead to sudden price movement.

It is clear that the market is still very volatile when it comes to Bitcoin. Despite some positive news coming out of the United States, the cryptocurrency still saw a significant drop in price. It will be interesting to see how Bitcoin fares in the coming days and weeks, as the market continues to fluctuate.

BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview
BTC’s price is currently stuck in a sideways pattern on the 4-hour chart. This could be a sign that the market is undecided about where to go next. However, it could also be a temporary pause before the next major move. Only time will tell.

It is clear that large players are closely watching the Bitcoin price, and are ready to buy or sell at key levels. This shows that there is significant liquidity in the Binance order books, which is good news for traders.

It's clear that there's a lot of interest in buying Bitcoin at higher prices, but so far the market has been unable to sustain a move above $20,000. This latest rejection suggests that there's still significant selling pressure at these levels, and it's likely that we'll see further consolidation in the near-term before Bitcoin tries to move higher again.

BTC’s price sees spikes in sell orders when it approaches $20,500 on lower timeframes. Source: Material Indicators
BTC's price sees spikes in sell orders when it approaches $20,500 on lower timeframes, according to material indicators. This suggests that there is significant resistance to further price increases at this level.

It is clear that the market is still very much undecided about which direction it wants to go in. However, the stability of the bid orders does provide some support for the market. If the market does trend lower, these levels will be critical in preventing BTC's price from reaching a new yearly low.

Looking at the big picture, it appears that large players are selling more and more, which could put a temporary stop to any potential upside.

The U.S. stock market is set to extend its weekend by two days, due to the Labor Day holiday. This often leads to higher volatility as low volume can influence the price action.

Bitcoin's price could rise if these factors play in its favor.

The data provided by analyst Justin Bennett indicates that the U.S. dollar may be rejected as it attempts to break above an important flat base. This could lead to a reclaiming of levels last seen in 2003.

It is possible that the recent rejection of the US dollar by Bitcoin and the crypto market is just a "fakeout" and that the real correlation between the two is still negative. However, if the dollar continues to weaken, this could be good news for Bitcoin and other cryptocurrencies.

So far, it looks like the $DXY was “wrong”. Maybe a pullback to 107 next week if this trend line breaks. That would be bullish for crypto in the short term. But ultimately, I think the USD index heads to 112-113 and probably even higher.
U.S. Dollar facing potential fakeout on the 4-hour chart. Source: DXY Index on Tradingview via Justin Bennett
The U.S. Dollar is potentially facing a fakeout on the 4-hour chart, according to the DXY Index on Tradingview. This could mean that the greenback could see some weakness in the near-term as traders unwind their positions. However, it is also possible that this is a false

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