Bitcoin advanced Tuesday after falling 8.5 percent in the previous session, displaying bullish continuation signs amid global re-risking sentiment.
The benchmark cryptocurrency touched an intraday high above $36,500, up 21.35 percent from its week-to-date low near $30,000. Traders flocked back into the market after sensing short-term buying opportunities near the said local bottom. In doing so, they took the BTC/USD exchange rate above a crucial resistance level of $35,000—it was capping the pair’s gains during the overnight US session Monday.
STOCKS RECOVER, DOLLAR SLIPS
The European trading session experienced a positive open, with the pan-European Stoxx 600 climbing 0.4 percent in early trade and the FTSE 100 Index in London advancing 0.18 percent. US futures were also positive, pointing to a profitable session Tuesday after closing the previous one in negative. Gold futures surged 0.34 percent.
At the core of Bitcoin and traditional markets’ recovery was a reversing US dollar. The greenback declined by 0.24 percent during the early Tuesday session, followed by a modest rebound ahead of the London opening bell. Technically, its lower high formation on the four-hour chart indicated a bearish continuation move.
“Investors found optimism in the prospect of further fiscal stimulus,” Seattle Times quoted Cesar Perez Ruiz, CIO of Pictet Wealth Management in a report. “President-elect Biden has a better chance of pushing through his agenda and delivering sorely-needed stimulus and support.”
BITCOIN BREAKOUT ANTICIPATED
The BTC/USD exchange rate expects to undergo a breakout move as it partially confirms an inverse head and shoulder pattern.