Closely followed crypto analyst Jamie Coutts says one indicator with a history of calling Bitcoin Q2-Q3 rallies is potentially about to flash green for BTC. Coutts tells his followers on the social media platform X that the dollar index (DXY), which measures the strength of the US dollar against a weighted basket of other major […]
The post $150,000 Bitcoin Incoming if This Indicator That’s Tipped Off Every BTC Summer Rally Flashes Green: Jamie Coutts appeared first on The Daily Hodl.
Today’s blustery global economy has everyone on edge as inflation has wreaked havoc on the wallets of ordinary people and energy prices continue to soar worldwide. According to Credit Suisse, “the worst is yet to come,” as the global investment bank’s analysts believe the European Union (EU) and the U.K. are already dealing with a […]
Closely followed crypto analyst Justin Bennett says that bargain-hunters hoping to get Bitcoin at $30,000 will likely end up disappointed. Bennett tells his 97,000 Twitter followers that many people who watch his YouTube strategy sessions are saying that a $30,000 Bitcoin is imminent, but he doubts traders will get BTC that cheap. “Every other comment […]
The post Don’t Count on Buying Bitcoin at $30,000, Says Crypto Analyst Justin Bennett – Here’s Why appeared first on The Daily Hodl.
Global markets have defied predictions as the U.S. Federal Reserve and several central banks worldwide are prepping to slow down monetary easing policy. On Wednesday, the U.S. central bank’s Federal Open Market Committee (FOMC) said it plans to taper quantitative easing (large monthly asset purchases) and end the program by March 2022. Moreover, the FOMC […]
The greenback regained strength in hopes that stronger inflation data in the U.S. would revive a tighter monetary policy and after better-than-expected retail sales growth.
Bitcoin (BTC) logged its worst daily performance since September as BTC price slid by 10% to under $59,000 on Tuesday. On the other hand, the U.S. dollar jumped to its best level in sixteen months after spending across the American retail sector grew despite persistent Covid-19 fears and inflation concerns.
The BTC price established an intraday low of around $58,600 on Coinbase, only to retreat higher to reclaim $60,000 as its psychological support. Its move downside appeared as U.S. President Joe Biden signed the $550 billion infrastructure bill into law, including new tax-reporting requirements for cryptocurrency users.
Some used the news yesterday (Infrastructure Bill) to shake the tree and get some more cheap bags of #bitcoin for themselves.
— David Gokhshtein (@davidgokhshtein) November 16, 2021
Meanwhile, the dollar continued its prevailing bull run smoothly as sales at the U.S. retail stores rose by 1.7% in October versus 0.4% in the previous month. That provided another evidence — after an excellent Nonfarm Payrolls report last week — that the U.S. economy has been rebounding strongly from the Covid-19 lows.
As a result, investors raised their bids on the dollar, anticipating that the Federal Reserve would accelerate the tapering of its $120 billion a month asset purchase program, leading to earlier-than-expected rate hikes, which remained near zero since March 2020.
The U.S. dollar index (DXY), which measures the greenback's performance against a basket of top foreign currencies, touched an intraday high of 95.821 on Nov. 16, its highest level since July 2020. Conversely, Bitcoin, which rallied strongly against a lower interest rate environment throughout 2020 and 2021, retreated.
Analysts anticipated the dollar to continue its growth higher in the coming months ahead, with market analyst Scott Melker predicting DXY to reach 97.50.
At the core of Melker's bullish outlook was a "double bottom" setup.
In detail, Double Bottoms appear when the price forms two low points on a similar horizontal level to represent a potential bullish reversal. A bullish confirmation comes when the price breaks above a specific resistance level — a high point between the two bottoms — to target level at a length equal to the pattern's maximum height.
So it appears, the U.S. dollar index has been breaking out of a similar Double Bottom setup, as shown in the chart below.
Bitcoin has more than doubled its prices in 2021 amid growing concerns about inflation. Nigel Green, chief executive of DeVere Group, noted that the cryptocurrency may keep on surging in value at least until the second quarter of 2022, citing the U.S. consumer price index's (CPI) recent climb to its three-decade high.
"This latest data out of the U.S. will only compound global fears about inflation as price pressures run hot around the world," he noted, adding:
"In this inflationary period, Bitcoin has outperformed gold, which has been almost universally hailed as the ultimate inflation hedge – until now."
Vijay Ayyar, head of Asia Pacific with crypto exchange Luno in Singapore, called Bitcoin's ongoing correction a "healthy pullback," especially after its 175%-plus year-to-date price rally to $69,000.
"It would be unusual to keep moving up without corrections," he noted.
On the other hand, Joel Kruger, a currency strategist at LMAX Group, said that a tighter Fed policy would start weighing on the broader market, hitting the riskiest assets the hardest, a reason why Bitcoin and the rest of the crypto market has been retreating against a rising dollar.
Related: Bitcoin will peak at $253K, Ethereum at $22K this cycle if 2016 halving bull run repeats
Martha Reyes, head of research at Bequant, a digital-asset firm, also called Bitcoin "a risk-on investment," stating that people would want to raise cash from the most profitable assets in times of stress.
Bitcoin was trading at $60,625 at the time of writing.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.
Popular crypto analyst Benjamin Cowen says that one overlooked catalyst could ignite a big long-term rally for Bitcoin (BTC). In a new strategy session, the analyst takes a look at the dollar index (DXY), which compares the US dollar against a basket of other major fiat currencies. Generally speaking, a weaker dollar can often imply […]
The post Under-the-Radar Catalyst Could Secretly Spark Huge Long-Term Bitcoin Rally, Says Crypto Analyst Benjamin Cowen appeared first on The Daily Hodl.
