Bitcoin bulls lie in wait as US dollar strength hits 5-month lows

Bitcoin ( $75,978.00 ) (BTC) continued to hold key support on Dec. 2 as United States stocks fell on the Wall Street open.

DXY weakness offers hope of “Santa rally”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as bulls bought time between $16,800 and $17,000.

Analysts had earmarked the former as a key level to retain, this nonetheless in question at the time of writing as stocks shed 1% to start the session.

Popular crypto analytics account Nunya Bizniz queried whether it was time for a “decision” on S&P 500 performance, eyeing a pattern which suggested a local top may soon appear.

Should that be the case, Bitcoin ( $75,978.00 ) ’s correlation to traditional risk assets would be tested, this having ebbed in the wake of the FTX meltdown.

For the meantime, however, the inversely-correlated U.S. dollar gave bulls little to worry about, the U.S. dollar index (DXY) hitting five-month lows.

DXY wicked down to just 104.37 on the day before rebounding above 105 at the Wall Street open.

Fellow analyst Pumpcat thus eyed the six-month close for the chart due at the end of December.

“I think the probablity for a longterm correction is high from here on,” he predicted.

Another popular Twitter analytics account, Cold Blooded Shiller, additionally entertained the idea of a “Santa rally” should macro data and comments from the Federal Reserve complement risk asset performance — to the dollar’s detriment.

“Markets are clearly at an important point – both the $DXY looking like freefall + markets like $SPX looking to try and break the major trendlines that have kept them capped,” a further tweet on the day added.

Analyst reinforces $19,500 significance

Eyeing potential for upside, trader and analyst Rekt Capital stuck with $19,500 as the ceiling for Bitcoin ( $75,978.00 ) on monthly timeframes.

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BTC/USD finished November down 16.2%, having broken through support to trade in a new range in the wake of FTX.

“BTC lost $19500 as support. But it hasn’t turned it into a new resistance,” he wrote.

“Technically, $BTC could relief rally to as high as $19500 to turn it to a new resistance. That would be a textbook confirmation of the breakdown. Doesn’t have to happen but a possibility.”

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