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Bitcoin Approaches $68K Amidst Manipulation Concerns and Dollar Index Surges

On October 16th, Bitcoin neared $68,000, achieving significant gains after overcoming prior market fluctuations. Analysts warned of potential manipulation within the Binance market, while increasing buying pressure from various investors reflects growing bullish sentiment. The unusual correlation between Bitcoin gains and the rising U.S. dollar also raises concerns within the crypto community.

On October 16th, Bitcoin (BTC) approached $68,000, achieving new highs not seen in 11 weeks as trading commenced on Wall Street. Data from Cointelegraph Markets Pro and TradingView revealed a resurgence in Bitcoin’s price, as bullish traders overcame previous leverage-induced fluctuations. Popular trader and analyst Skew raised concerns regarding potential market manipulation, noting significant spoofing activity within the Binance spot market, where a notable disparity between ask and bid liquidity was observed. He cautioned that any drop below $67,000 could result in a liquidation cascade for late long positions in derivatives trading. Buying momentum primarily emanated from Binance and Bitfinex spot purchasers, mirroring prior market behavior. Monitoring tool Material Indicators indicated a broad increase in buying activity from both large and small investors, with bid liquidity concentrating above $66,000 and a possible move towards the $70,000 mark on the horizon. Crypto trader and analyst Michaël van de Poppe expressed optimism regarding Bitcoin reaching a new all-time high, predicting this could occur within a matter of weeks, estimating a potential rise to $90,000 by the end of the year. Interestingly, Bitcoin’s price increased concurrently with the U.S. dollar, diverging from their usual inverse correlation. The U.S. dollar index (DXY) surged to 103.45, the highest since August 8, on a day that previously saw significant Bitcoin price gains. This unusual correlation raised concerns within the crypto community, with traders like Max Price highlighting the possibility of an imminent milestone for the DXY, predicting scores of 110 or higher. The commentary underscored the importance of monitoring this situation, indicating potential exit pumping by BTC in response to the dollar’s strength. The article emphasizes the risks associated with investing in such volatile markets and the necessity for thorough personal research before engaging in trading activities.

The article examines the recent performance of Bitcoin as it reached new highs amid fluctuating market conditions. The context includes the correlation between Bitcoin and the U.S. dollar index, which typically functions inversely. The discussion highlights the implications of the DXY’s rise alongside Bitcoin’s recent gains, particularly in the wake of potential manipulation in trading practices. Key industry analysts provide insights into market dynamics and predict future developments, stressing caution and due diligence when navigating the cryptocurrency market.

In summary, Bitcoin’s rise toward $68,000 marks a notable moment in its market trajectory, displaying resilience despite concerns about manipulation and the concurrent strength of the U.S. dollar. Analysts express varied predictions regarding future price movements, with a significant focus on upcoming market trends. The importance of conducting personal research before investing in cryptocurrencies cannot be understated, given the inherent risks involved in such volatile trades.

Original Source: cointelegraph.com

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