Bitcoin price rises above $19.6K as US dollar strength drops to 3-week low

Bitcoin price rises above $19.6K as US dollar strength drops to 3-week low

Bitcoin (BTC) returned to local highs at the Wall Street open on October 25 as nervous analysts kept watching the miners.

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

DXY provides instant relief for BTC

info from Cointelegraph Markets Pro And the TradingView BTC/USD showed up to pose a modest resistance challenge, still unable to escape from a stable trading range.

Similarly, US stocks headed modestly higher, with the S&P 500 and Nasdaq Composite up 1% and 1.3%, respectively, at the time of writing.

Conversely, the US Dollar Index (DXY) lost ground on the day, falling to its lowest since October 6, providing a potential tailwind for risky assets to sustain opportunistic gains.

US Dollar Index (DXY) 1-day candlestick chart. Source: TradingView

For traders, the status quo has remained unchanged amid a continuing lack of real volatility. The famous Twitter account Crypto Tony highlighted Great range levels, with $18,900 an important area to hold.

Annotated BTC/USD chart. Source: KryptoTony / Twitter

Meanwhile, fellow Crypto trader Ed revealed that he is “still waiting” for a correction to this level, followed by a bounce after $19,100.

said in Youtube update.

Previously, commentators revealed a wait-and-see approach to the market, with penetration estimates ranging from two to me eight weeks.

Miners under surveillance

Meanwhile, downside risks are heavily focused on today’s miners.

Related: Least Volatile ‘Uptober’ Ever – 5 Things to Know in Bitcoin This Week

With the hash rate at an all-time high but the spot at its lowest level in nearly two years, miners continue to battle the tightest profit pressure in history. Some warned that they would soon be forced to unload stored coins to cover expenses.

in dedicated research piece On this topic, Caue Oliveira, Principal Analyst at BlockTrends Chain, drew particular attention to the hash rate – miners’ earnings per exahash.

“At this moment, the retail price, as the index is known, has reached $66,500, the lowest value ever recorded,” he explained.

Total revenue has deviated sharply from average annual growth. What is common to all bears but with one difference: the costs of maintaining the operation.”

As of September, public miners’ BTC balance totaled 34,509 BTC, a large chunk of liquidity that “could be emptied as mining pressure continues,” according to market analyst Sam Rule. hung.

“Bitcoin can conceivably capitulate into the $10,000 to $18,000 range, driven by an eventual sell-off by miners. It is something I am definitely preparing for psychologically,” long-time analyst Tor Demeester added.

Bitcoin miner net change position chart. Source: Glassnode

With miners out a The major surrender stage However, in August, the data indicates that even a prolonged currency distribution does not necessarily affect price movement negatively.

In early 2021, for example, after BTC/USD surpassed its all-time high in 2017, miners embarked on a collective profit taking, and this failed to curb bitcoin as it reached a high of $58,000 in April of that year.

According to on-chain analytics firm Glassnode, nearly 30,000 BTC mining wallets sold at that time in January.

Chart of bitcoin balance in mining wallets. Source: Glassnode

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