Bitcoin Bounces Back: Dollar Decline Spurs Rally!

Bitcoin (BTCUSD) has kicked off the week on a positive note, with a 2% gain during the Asian and early London sessions, building on its momentum from the weekend.  

The recent surge in Bitcoin prices comes amidst a backdrop of weakening Dollar strength, fuelling increased risk appetite among investors. As indicators point to a softening labour market in the U.S., including a rise in jobless claims, Bitcoin has been buoyed as it trades above the $60000 mark.  

Additionally, expectations of reduced inflationary pressures on the back of a weaker labour market and the possibility of future rate cuts have further bolstered risk sentiment, contributing to Bitcoin’s recent uptick. With all eyes now turning to upcoming U.S. inflation data, the trajectory of interest rates hangs in the balance, potentially influencing Bitcoin’s future movements. 


Bitcoin’s recent price action paints a dynamic picture of market sentiment and technical indicators. Initially entrenched in a downtrend and trading below the 100-day moving average, Bitcoin’s fortunes began to shift, with sentiment favouring upside potential. This sentiment shift was evident as the price converged with the 100-day moving average, signalling a potential reversal. 

Support emerged at the 56409.51 level amid oversold RSI conditions, sparking a notable rebound. However, as the cryptocurrency surged, resistance materialized at the 65500.00 level, driven by overbought RSI conditions, limiting further upward movement. Subsequently, a downturn ensued, but downside momentum was curtailed at the 50% Fibonacci Retracement level, serving as an intermediate support and prompting a bullish reversal. 

Looking ahead, if upside momentum persists, attention may turn to retesting the 65500.00 resistance level. Conversely, if selling pressures resurface, the 50% level could act as a point of interest to the downside.  


Bitcoin’s recent positive momentum, supported by weakening Dollar strength and expectations of reduced inflationary pressures, underscores its resilience amidst market fluctuations. With attention focused on upcoming U.S. inflation data, key technical levels like the $65500.00 resistance and 50% Fibonacci Retracement level will likely guide future price movements. 

Sources: Reuters, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst  

Disclaimer: Trive South Africa (Pty) Ltd (hereinafter referred to as “Trive SA”), with registration number 2005/011130/07, is an authorised Financial Services Provider in terms of the Financial Advisory and Intermediary Services Act, 37 of 2002. Trive SA is authorised and regulated by the South African Financial Sector Conduct Authority (FSCA) and holds FSP number 27231. Trive Financial Services Ltd (hereinafter referred to as “Trive MU”) holds an Investment Dealer (Full-Service Dealer, excluding Underwriting) Licence with licence number GB21026295 pursuant to section 29 of the Securities Act 2005, Rule 4 of the Securities Rules 2007, and the Financial Services Rules 2008. Trive MU is authorized and regulated by the Mauritius Financial Services Commission (FSC) and holds Global Business Licence number GB21026295 under Section 72(6) of the Financial Services Act. Trive SA and Trive MU are collectively known and referred to as “Trive Africa”.

Market and economic conditions are subject to sudden change which may have a material impact on the outcome of financial instruments and may not be suitable for all investors. Trive Africa and its employees assume no liability for any loss or damage (direct, indirect, consequential, or inconsequential) that may be suffered. Please consider the risks involved before you trade or invest. All trades on the Trive Africa platform are subject to the legal terms and conditions to which you agree to be bound. Brand Logos are owned by the respective companies and not by Trive Africa. The use of a company’s brand logo does not represent an endorsement of Trive Africa by the company, nor an endorsement of the company by Trive Africa, nor does it necessarily imply any contractual relationship. Images are for illustrative purposes only and past performance is not necessarily an indication of future performance. No services are offered to stateless persons, persons under the age of 18 years, persons and/or residents of sanctioned countries or any other jurisdiction where the distribution of leveraged instruments is prohibited, and citizens of any state or country where it may be against the law of that country to trade with a South African and/or Mauritius based company and/or where the services are not made available by Trive Africa to hold an account with us. In any case, above all, it is your responsibility to avoid contravening any legislation in the country from where you are at the time.

CFDs and other margin products are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how these products work and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. See our full Risk Disclosure and Terms of Business for further details. Some or all of the services and products are not offered to citizens or residents of certain jurisdictions where international sanctions or local regulatory requirements restrict or prohibit them.