Key Bitcoin Takeaways
- Bitcoin (BTC/USD) started the week in negative territory as traders moved in the safety of the US dollars.
- The cryptocurrency held onto its ascending trendline support that constitutes a pennant structure.
Spot Bitcoin rates fell on Monday as traders’ focus shifted to the US dollar after Turkey’s President Recep Tayyip Erdogan’s abrupt decision to fire his central bank governor responsible for the Turkish Lira’s recovery.
The emerging-market currency fell by more than 14 percent at one point in time, raising the dollar’s appetite among investors that remained exposed to the Turkish economy. Bitcoin’s prices surged towards $64,000-100,000 in the country’s peer-to-peer marketplaces, pointing to a renewed interest in the cryptocurrency against inflation fears.
The global Bitcoin market remained unfazed by developments in Turkey. As the US session kicked in, the benchmark cryptocurrency plunged below $57,000 after sustaining above the Asia-Pacific and European trading hours. The US dollar index was down 0.13 percent around the same point while tech stocks surged.
BTC/USD Levels to Watch
So it appears, Bitcoin maintained its short-term bullish sentiment by staying above its ascending trendline support. The price floor comes as a part of a pennant structure. Bitcoin is currently consolidating inside the pattern, testing its upper trendline as resistance and the lower trendline as support.
Traders could use the range to find short-term opportunities. For instance, a pullback from the upper trendline could open short opportunities towards the lower trendline. Meanwhile, a rebound from the lower trendline could have traders open a long position towards the upper trendline.
But as the price range squeezes, alongside declining volumes, Bitcoin’s likelihood of undergoing a breakout move would increase. Should the cryptocurrency moves lower with a spike in volume, it would risk crashing by the pennant’s maximum height. That puts BTC/USD en route to below $50,000.
Conversely, a bullish breakout increases the pair’s likelihood of crossing its previous record high, near $61,778, to reach levels above $66,000.