Bitcoin Seeks New Highs Amid US Dollar Surge

Cryptonews Sophia Klein October 22, 2024

Bitcoin Seeks New Highs Amid US Dollar Surge

Bitcoin continues to struggle around $67,000 as traders call for a new high above $69K amidst rising US dollar strength. Analysts note the necessity for Bitcoin to establish higher support levels to maintain bullish momentum, while the DXY’s recent surge has raised concerns regarding its inverse relationship with cryptocurrencies.

On October 22, Bitcoin (BTC) remained under pressure, struggling to maintain support levels while analysts predicted the necessity of achieving a new high above $69K within the week. Following a 3% decline attributed to a market sell-off in the United States the previous day, BTC/USD fluctuated around the $67,000 mark, indicating a failure to regain bullish momentum. The popular trader known as Skew remarked on the situation, indicating that a new higher high is essential for Bitcoin’s resilience, stating, “Ideally if this market is actually strong price should make a HH around mid week above $69K.” In contrast, the support near $65,000 is also being closely monitored, with some analysts suggesting the possibility of deeper retests toward $60,000. Trader Castillo Trading referred to the current market conditions as a straightforward setup, while another trader, Roman, observed that BTC/USD is currently testing the $66K support level after a bullish breakout and retest. Roman noted, “Would like to see us dive further into it to assist in cooling off RSI & create volatility.” Amidst these trends, attention has also shifted to the rising strength of the US dollar, measured by the US Dollar Index (DXY), which breached the 104 mark and has gained 3.2% month-to-date. This surge occurred as equity markets experienced a slowdown in their rapid ascent. J. A. Maartunn, a contributor to CryptoQuant, pointed out this significant shift in the DXY, stating, “The US Dollar Index ($DXY) is rising quite rapidly, yet almost no one is talking about it.” Notably, while the DXY typically exhibits an inverse correlation with cryptocurrencies and risk assets, its current strength has not diminished the risk-on attitude displayed in the market. Skew has also indicated that the recent rebound in the DXY may be attributed to uncertainties regarding future US financial policy and the implications of the upcoming Presidential Election. As market conditions evolve, the interaction between Bitcoin’s price movement and broader economic indicators, such as the strength of the US dollar, will remain a vital area of observation for traders and investors.

The article discusses the ongoing fluctuations in Bitcoin’s price within the context of broader market dynamics, particularly the impact of the US dollar’s strength. Bitcoin has been struggling to maintain its support levels following a sell-off, with analysts suggesting that a new high is necessary to reinforce market confidence. The observations also highlight the relationship between Bitcoin and traditional financial indicators such as the DXY, which indicate macroeconomic underlying factors influencing cryptocurrency markets.

In summary, the ongoing market conditions for Bitcoin reveal significant pressure on support levels, with a consensus among analysts that a new high above $69,000 is essential for maintaining bullish sentiment. Concurrently, the strength of the US dollar poses unique challenges in the context of risk assets, underscoring the importance of monitoring both cryptocurrency movements and macroeconomic indicators as they evolve.

Original Source: www.tradingview.com