- Bitcoin price remains resilient despite the US dollar’s power
- A bullish divergence with the RSI supports Bitcoin’s price motion
- The horizontal consolidation may be a part of a bullish flag sample
This is the final buying and selling week of Q3 2023, and buyers have already got plans for the final quarter of the yr. Bets are made each methods of the greenback, particularly since September introduced such a powerful rally.
For occasion, EUR/USD traded immediately beneath 1.05, as the bearish development from 1.12 continued. Most of the decline was in September.
Investors purchased the greenback and dumped shares. After all, the Fed continues to be restrictive and talks hawkish.
But in all this robust greenback setting, there’s one market that, surprisingly, was (comparatively) steady.
Bitcoin.
Bullish divergence with the RSI supports Bitcoin’s bullish case
Bitcoin rallied at the begin of 2023, leaping from beneath $17k to above $30k in April. But after that, a horizontal consolidation began, and Bitcoin couldn’t rally anymore.
However, by staying comparatively flat and holding on to most of its features, Bitcoin exhibits power not seen in different markets. When the US greenback rallied, Bitcoin held the floor all this time, albeit it did appropriate a bit from the yearly highs.
A fast take a look at the Relative Strength Index (RSI) reveals a bullish divergence that fashioned lately. It supports the bullish case for Bitcoin, and now all eyes are on the higher fringe of the horizontal channel.
Speaking of the channel, it could be a part of a bullish flag formation. If that’s the case, a bullish breakout must be adopted by a measured transfer equal to the rally seen at the begin of the yr.
