US dollar downturn aids Bitcoin bulls before $50K BTC price showdown

Bitcoin (BTC) challenged $46,800 on Wednesday as a weakening United States dollar added to bullish momentum.

“Aiming for $50,000?”

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting highs of $46,787 on Bitstamp Wednesday, a hair short of the previous day’s peak.

Fresh from the voting day on the U.S. infrastructure bill, something that ultimately failed to move the market, Bitcoin showed no signs of bearishness as it returned to the door of major resistance beginning at $47,000.

USD’s performance post bill on the day provided another potential catalyst for gains. A downtrend in dollar strength often goes hand-in-hand with a boon for cryptocurrency more broadly.

At the time of writing, the U.S. dollar currency index (DXY), which measures the dollar against a basket of 20 trading partner currencies, was reversing gains it had made before the vote, back below the 93 mark.

Previously, Cointelegraph quoted popular trader Crypto Ed, who eyed a local DXY top of 94 before a comedown gave room for Bitcoin and altcoins to surge. 

“BTC range: took out the highs, took out the lows,” part of a Twitter post Wednesday read.

“Up we go. Still aiming for 50k.”

Formidable support vs. formidable resistance

A potential hindrance to further upside nonetheless remained in the form of the considerable sell wall at $47,000.

Related: Bitcoin Technicals: Why BTC price breaking $48K resistance is the key to new all-time highs

On the flip side, a continued buying trend by retail and institutional investors is ensuring that the Bitcoin supply has been tightening at levels from $29,000 and upward.

Another theory suggests that Chinese whales, spooked by the May miner rout, are now reentering the market.

“Earlier this year, BTC enjoyed strong rallies whenever the ~$45200 level held as support,” fellow trader and analyst Rekt Capital added.

“Yesterday, $BTC successfully reclaimed the ~$45200 level as support.”