Bitcoin's price is on the rise once again as it heads towards $24,000 at the Feb. 27 Wall Street open. The cryptocurrency has been buoyed by a strong weekly close, with BTC/USD 1-hour candle chart (Bitstamp) showing it rebounding in line with US equities futures.
Despite seeing lows of $22,770 over the weekend, the weekly candle closed above $23,500, providing hope that Bitcoin can continue its upward trajectory to finish February on a high note.
Many traders and analysts are optimistic about Bitcoin's near-term outlook. Popular trader Crypto Tony believes that a $25K test is inevitable if the cryptocurrency can reclaim a crucial $23.8K level, while Decentrader argues that stronger signals are needed before going long on BTC. However, there are also some who remain cautious, such as Crypto Tony, who said he would only long if BTC can reclaim $23,750 and remain above it.
In contrast to Bitcoin's gains, the US dollar index (DXY) has dropped below the 105 mark, which is a boost for risk assets across the board. At the time of writing, US stocks were recovering ground lost in the previous week, with the S&P 500 and Nasdaq Composite Index up by 1% and 1.2%, respectively.
The drop in the value of the US dollar has helped to fuel the rise in Bitcoin's price, which is often viewed as a hedge against inflation and a store of value during times of economic uncertainty.
The shift in the correlation pattern between DXY and BTC has been also noted by analysts. According to the correlation coefficient of DXY, the Bitcoin Bull Market is currently in full swing. A high correlation after a bear market negative correlation has historically signalled the start of every Bull Market.