Despite dipping below the $26,555 support level during the downturn last week, Bitcoin managed to close daily above this region, ascending to the level of $27,640.
Upon evaluating the four-hour timeframe, Bitcoin continues its downward trend; however, it hasn’t yet lost its horizontal support zone. If the horizontal support is lost, the first support zone that could hold the price will be at the levels of $25,200. I believe it’s necessary to consider both the DXY and USDT.D charts, in addition to analyzing the Bitcoin chart alone, and they should certainly be checked before entering a trade.
With the weekly opening, a GAP (Price Gap) has formed in the $26,770 – $26,510 range. After this gap in the area is filled, we may see an upward reaction.
With the gaining of the resistance region of 7.30% – 7.40%, we expect to test the 7.80% – 7.90% resistance, which is also an imbalance region, following its retest of this area. Currently, the support and resistance levels I’m tracking on the USDT.D chart are as follows. If Bitcoin reaches the support levels I mentioned, I am considering joining the trade with confirmation from the USDT.D chart.
Technically, on the DXY chart, the last bottom made in the LH region at the 102.80 level has been broken. Looking at the current structure, the DXY, which had a bearish market structure, has transitioned into a bullish market structure with the recent rise. Although I think it could receive a reaction from the 103.50 level, which is the first resistance area, losses in value may be seen in products against the dollar due to the overall bullish appearance of the DXY chart.