Inverse Signals: Why Bitcoin Weakness Is Attributed To Dollar Strength
Bitcoin price is currently on the ropes, potentially about to lose support at around $56,000. But could the recent weakness in the cryptocurrency market be more a factor of a strong dollar? TD Sequential Triggers Anti-Correlated Signals On BTCUSD, DXY Weeks ago, we posed the question if or not the Dollar Currency Index making new highs in 2021 was a dangerous situation for Bitcoin. After more than $10,000 per coin was wiped off the price of BTC, the answer was a resounding yes. But much like the cryptocurrency uptrend in late 2020 and early 2021 came to an abrupt halt, even the....
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Investors should keep an eye on the tight inverse correlation between the strength of the U.S. dollar and Bitcoin. A widespread debate among investors is the correlation of Bitcoin (BTC) with other markets. A high degree of correlation between the equity markets and Bitcoin has existed, particularly in the last few months. In other periods, gold and Bitcoin appear to move in tandem.However, the correlation that should be watched the most is the dollar since the global economy is based on the strength or weakness of our world reserve currency, the United States dollar.Weaker USD drove up....
During an MSNBC interview, Hillary Clinton continued to suggest hypothetical scenarios in which cryptocurrencies could destabilize the United States and called on the Biden administration to regulate them as she fears that state and nonstate actors manipulate the role of the U.S. dollar. Related Reading | Inverse Signals: Why Bitcoin Weakness Is Attributed To Dollar Strength Clinton warned people are only beginning to see the need to regulate the cryptocurrency markets and called to imagine “the combination of social media, the algorithms that drive social media, the amassing of even....
Analysts and traders strongly adhere to the “Bitcoin is inversely correlated to the strength of the U.S. dollar index” thesis, but a closer look at the data suggests otherwise. Presently, there seems to be a general assumption that when the U.S. dollar value increases against other global major currencies, as measured by the DXY index, the impact on Bitcoin (BTC) is negative.Traders and influencers have been issuing alerts about this inverse correlation, and how the eventual reversal of the movement would likely push Bitcoin price higher.Analyst @CryptoBullGems recently reviewed how the....
The Bitcoin price has woken up from its Snow White slumber over the past two days. As NewsBTC reported, the price rally started shortly after the Dollar Index (DXY) showed weakness and suffered a sharp setback. For much of 2022, Bitcoin and the dollar index were inversely correlated. While the DXY was rising relentlessly and all fiat currencies around the world were depreciating, the USD was gaining massive strength. However, this trend was also extremely negative for the Bitcoin price, as a strong USD meant a weak Bitcoin. The inverse correlation was seen again on Tuesday. A prolonged....
No sign of a breakout as $33,000 becomes resistance overnight and altcoins trade mostly flat as a result of BTC price weakness. Bitcoin (BTC) stayed below the $33,000 mark on July 9 with a fresh price dip also putting an end to altcoin strength. BTC/USD 1-hour candle chart (Bitstamp). Source: TradingViewBTC price flips $33,000 supportData from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ranged below a previous support level into Friday.Earlier in the week, $33,000 saw multiple tests but remained in place as support, this only coming undone on Thursday.$33,000 then....