Bitcoin hits a high of $ 63,279 while the US dollar index falls to a 3-week low

The US dollar index (DXY) could slide further in the fourth quarter after a classic technical setup known as a rising wedge. The bearish outlook for the greenback could push Bitcoin price to an all-time high as BTC price just hit $ 63,279 before falling back to current levels.

BTC price 4-hour chart | Source: Tradingview

DXY ready to fall 1.75%

A bullish wedge is a bearish reversal pattern that begins to expand at the lower end but narrows as the price rises. As a result, the trading range narrows, which makes the rally unconvincing. This usually causes the price to drop below the wedge support line and then drop by the maximum distance between the pattern’s trendlines.

DXY has formed a similar pricing structure since August 2021. Additionally, this week’s decline broke below the wedge support line, triggering a downward move towards 92.416, about 1.75% below the breakout level (~ 93.98).

Daily DXY price chart with increasing wedge setup | Source: TradingView

A week ago, DXY hit a one-year high of $ 94,563, benefiting from inflation fears with a recession and the Federal Reserve’s decision to abandon its bond purchase program to $ 120 billion per month in November 2021, followed by a rate hike the next year.

But the index fell to a three-week low on Tuesday, underscoring that markets have priced in the Fed’s decision to tighten monetary policy. Instead, their focus has shifted to normalizing policy elsewhere, including the UK, where analysts are forecasting rate hikes of 35 basis points later this year.

Bitcoin is recovering thanks to FOMO ETF

Bitcoin price found support this week from a weakening US dollar, as did optimism when the first Bitcoin futures ETF was launched on the New York Stock Exchange.

Bitcoin price is up over 40% since the beginning of the month, hitting a five-month high of $ 63,279 tonight. A small correction followed, but Bitcoin remained stable at $ 62,000 thanks to immediate support from the weakening dollar sentiment.

BTC daily price chart with ascending channel pattern | Source: TradingView

Technically, Bitcoin has hit bullish exhaustion in the popular ascending channel area. With the Relative Strength Index (RSI) also overbought above 70 on the daily timeframe, the leading cryptocurrency could see a temporary correction with a near-term support target near $ 60,000.

But in the long run, many analysts predict that Bitcoin price will hit $ 100,000.

Tom Lee, co-founder of Fundstrat Global Advisors, said in a statement Monday that a futures-based Bitcoin ETF will attract more than $ 50 billion in inflows in its first year and BTC could soar to $ 168,000.

Fidelity Investments Global Head of Macro, Jurrien Timmer, stated that Bitcoin will become a six-figure asset by 2023, citing Metcalfe’s law, which measures the network’s value based on its growth rate.

“Other technological innovations, and even a stock like Apple, go through a similar process, with sales increasing 38 times and market value 900 times in 10, 20 years. So it’s an exponentially growing process. And based on these metrics, my models will show $ 100,000 in 2023. “

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

At home at home

According to Cointelegraph

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page