Bitcoin Heading Towards a ‘Death Cross’ – Can BTC Price Reverse the Bearish Impact?
Bitcoin price is hovering below the crucial levels at $20,000 for over a month now and hence the volatility appears to have reached the bottom. Meanwhile, the volume maintains some decent levels which have failed to rise the volatility of the asset. In the coming days, a more dreadful dump is awaiting the Bitcoin (BTC) price rally due to which it may even reach its older levels too.
The BTC price on the weekly chart displays the possibility of forming a Death Cross as the 200-day MA & 50-day MA levels could face a crossover. It is also the first Death Cross happening in the weekly chart since the inception of Bitcoin which may happen somewhere in January or February 2023.
As mentioned in the above chart, the historical death cross is just a few weeks away and if the BTC price wants to nullify the impact, it is required to intensify its volatility. The price is required to move higher and lower very quickly and may even reach the bottom between $7000 to $8000, which may also be a temporary one.
However, the price amid the fresh drop has broken down from the lower trend line, displaying an acute bearish trend. Despite a bullish interference, the price may not get the required boosts as the trade set-up is completely in favor of bears. Moreover, the intensified volume signals the stiff involvement of the bulls and the bears due to which the BTC price has been restricted below the crucial resistance levels.
Crypto Markets Remain Unsettled, Bitcoin & DXY May Reverse their Stance Soon!
Bitcoin price is displaying acute strength despite the crypto markets including Ethereum price tumbling down. The growing strength within the star crypto may be an outcome of the US dollar becoming fragile. Ahead of the crucial CPI announcement, the DXY Index is plunging hard to reach the levels below $108 that have induced a significant momentum within the BTC price.
However, the conditions are expected to flip shortly as both the assets, Bitcoin & DXY Index appear to have stuck up in a trap!
On the other hand, the Ethereum platform is all set to undergo a Merger in less than 36 hours but the markets continue to remain uncertain. It appears that the impact of the event has faded over time. Nevertheless, the BTC price is believed to be at the peak of the bull trap and a significant drop may make its way out soon.
A popular analyst Bloodgood believes that the BTC price is primed to hit the lower support at $20,000 while the ETH price may fall prey to a “buy the rumor, sell on news”.
Conversely, the DXY Index seems to be preparing for the next leg up which may break the previous highs at around $110.78 and reach $112 in the next 24 to 48 hours. Hence flashing significant bearish signals for the BTC price at the same time.
Collectively, Bitcoin & DXY Index has been displaying a huge correlation, inversely, of-let. While the CPI figures are expected to drop slightly from the recent figures at 8.5% to 8.1%, the USD may gain notable strength ahead, challenging the BTC price & the entire crypto space.
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Here Is How Bitcoin Price Will Reverse Its Trend
The world’s first cryptocurrency, Bitcoin has regained its $20,000 price levels, but the currency is still on a bearish trend. Amidst this volatility, a well-known crypto market analyst is predicting future days of Bitcoin and other cryptocurrencies.
The analyst, Michael van de Poppe in a new video advises his followers over Youtube that traders should also track US dollar along with Euro that is rising against the dollar.
The analyst claims that Bitcoin’s DXY index is pointing towards a trend reversal soon where the price level is about to hit the range that’s not seen since February 2015, which was Bitcoin bottom. He also says that though the weekly candle is indicating a reversal, it all depends on DXY dipping below 108.6 points.
Bitcoin Price To Recover?
Additionally, Van de Poppe asserts that Euro/USD should also find its recovery entry and regain the 1.01 level. If this happens it will push other currencies like Bitcoin.
At the time of publication, the US Dollar Index (DXY) is positioned at 109.64 and Bitcoin is trading at $19,920.
The significance of the DXY to the upcoming price movements of cryptocurrency has been noted by many analysts, including Van de Poppe. Renowned trader Justin Bennett informs his 107,300 Followers on twitter that for cryptocurrency to rise, the dollar should “cool down.”