Bitcoin rose 2.14% to $48,121 on Wednesday, September 15. Buyers pushed the price out of the recent range during the European session, up to $48,500. Price action recovered 13.3% after an earlier 19% pullback. A 23.5% rally from the $42,843 low will be needed to retrace to the $52,920 high.
After breaking out of the side channel, the upward momentum stalled at 62% of the decline from $52,920 to $42,843. A strong headwind has stoked a rising dollar in the global currency market, as well as uncertainty in the US stock market and the precious metals market. Market participants have been brushing aside weak US macro data as they believe the Fed will start dialing back its pandemic-induced stimulus around the end of 2021.
By the time of writing, Bitcoin was trading at $47,929 on the Binance exchange, with market cap exceeding $900 bln. BTC bounced off the $43,370 support level. The bulls are determined to push higher. On the way, they will once again run up against the psychologically important $50k level.
The price is trading near $47,400 (the upper bound of the channel), which used to be resistance but now acts as support. If price action reverts back to the previous range, sellers will quickly seize the initiative and force buyers to exit the long positions they launched during the channel breakout.