Here Is What May Have Caused Bitcoin to Nosedive into Its Crucial Support

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But if broken, a move to new all-time highs of above $20,000 are in the cards.

Source: BTCUSD on TradingView.

• Bitcoin saw a nosedive that caused it to divert all of yesterday afternoon’s gains as a result of the intense selling pressure around $13,800
• This level marks the cryptocurrency’s 2019 highs, along with a continuing bout of trading in this level could confirm this as a local top
• It is important to note the BTC has found support above $13,200, which is a favorable sign suggesting that upside is imminent
• The resistance isn’t the sole factor that may have sparked this selloff
• Analysts are noting that a sudden surge in the U.S. Dollar’s value may have struck a blow to the cryptocurrency as well

One analyst spoke about this, noting it is now imperative that BTC holds above $13,250 — a degree it’s currently dipping beneath.

Overnight, BTC witnessed its first harsh rejection seen throughout the course of its recent uptrend.

The resistance at $13,800 is not the sole reason why Bitcoin’s price plunged today.

Here’s Another Reason Why BTC Is Plunging Now

If the U.S. Dollar Currency Index (DXY) continues pushing higher, it may place additional pressure on Bitcoin.

Up to now, BTC’s local top coincides perfectly with its 2019″blow-off top” set in the summertime. The resistance here could prove to be significant from the near-term.
Where it tendencies next will depend mostly on whether or not it can keep on holding above its near-term support.

“Retrace here on BTC, as DXY is pushing upwards given the surrounding coronavirus pandemic fears. To avoid deviation above the range , $13,250-13,325 has to hold for support. If that breaks, $12,700 seems next.”

Bitcoin Plunges from Highs as Momentum Falters

Released at Wed, 28 Oct 2020 23:00:49 +0000
Bitcoin and the aggregated cryptocurrency market have been caught within a strong uptrend throughout the past few days and weeks, but this momentum is now showing signs of faltering.
This denial caused its price to plummet from highs of $13,800 to lows of $13,200 before it managed to find some support that has since helped slow its descent.

At the time of writing, Bitcoin is trading down just over 3 percent in its current price of $13,200. This marks a notable decline from its recent highs of $13,800 that were set yesterday afternoon.