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Weekly BTC Outlook: $20K Retest Possible As USD Crashes

The weekly BTC outlook seems like the benchmark cryptocurrency will hit the $20,000 price level, its all-time high, as the US dollar hits 2018 lows so let’s find out more in the latest Bitcoin news. The number one cryptocurrency is still in the red,…

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The weekly BTC outlook seems like the benchmark cryptocurrency will hit the $20,000 price level, its all-time high, as the US dollar hits 2018 lows so let’s find out more in the latest Bitcoin news.

The number one cryptocurrency is still in the red, down by 1.28 percent on the whole and many factors contributed to the drop, mainly profit-taking as the price logged a three-year high of $19,500. In the meantime, the rumors about the US Treasury Secretary favoring the regulations for private crypto wallets increased the sell-off. Over the weekend, Bitcoin deleted a slight portion of these concerns. The cryptocurrency pushed higher after it found concrete support in the $16,200 range. It was trading at 15% higher from the previous week’s low as of Monday and pointed to another attempt at surpassing the $19,500 and retest the $20,000.

Bitcoin is up more than 300 percent after the Fed announced its bond-buying program. Source BTCUSD on TradingView.com

The US fundamentals are favoring the scenario and today even the US dollar hit 91.69 against the basket of foreign currencies which is the lowest level since April 2018. The CNBC report outlined some optimism in the COVID-19 vaccine which was coupled with more bets on the economic stimulus in the US, pressuring the dollar lower.

us dollar
US Dollar Index breaks below its multi-year support trendline. Source DXY on TradingView.com

Weaker dollar favors the weekly BTC outlook while in the short-term risks create a bullish setup for the crypto asset especially as it waits for the $20K retest. Bitcoin’s fundamentals during the dovish FED and booming institutional adoption pointing out to another record high in the marking. The BTC market is starting the week positively and the gains came especially after the Guggenheim Funds Trust filed an amendment with the US Securities and Exchange to put 10 percent from its reserves to Grayscale’s BTC Trust. The trust fund has net assets of about 4.97 billion meaning that it could invest about $500 million in BTC.

Bitcoin’s start this week was positive also because of the BTC editorial of Niall Ferguson who is a prominent financial historian. The columnist favored the crypto’s built-in scarcity in the global central banks’ relentless money printing by adding:

 “The dollar’s future weakness has been a favorite 2020 talking point for Wall Street economists such as Steve Roach. You can see why. There really are a lot of dollars around, even if their velocity of circulation has slumped because of the pandemic.”

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