Bitcoin price faces 200-week trendline as US dollar hits 6-month high

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Bitcoin (BTC) hugged a key long-term trendline on Sept. 7 as U.S. greenback power hit its highest in six months. 

BTC/USD 1-hour chart. Supply: TradingView

Bitcoin vs. 200-week shifting common varieties “million greenback query”

Knowledge from Cointelegraph Markets Pro and TradingView confirmed BTC value strikes specializing in the realm round $25,700.

Circumstances have been much less risky than the day prior, which noticed a visit to $26,000 and native lows underneath $25,400 inside a single hourly candle.

Bitcoin market individuals remained cautious total, with predictions of contemporary draw back to come back changing into increasingly commonplace.

“$BTC – except we reclaim might low I nonetheless assume decrease,” standard dealer TraderSZ told X (previously Twitter) followers on Sept. 7.

“Taken a brief right here half dimension focusing on 23.6k. If we reclaim Could low I’ll look to scale out.”

BTC/USD annotated chart. Supply: TraderSZ/X

Michaël van de Poppe, founder and CEO of buying and selling agency Eight, flagged the 200-week exponential shifting common (EMA) at $25,670 as the important thing degree to observe on weekly timeframes.

“The million greenback query is whether or not #Bitcoin holds above the 200-Week EMA,” he summarized.

BTC/USD 1-week chart with 200EMA. Supply: TradingView

Fellow dealer and analyst Toni Ghinea was extra categorical, eyeing $25,000 and decrease subsequent for Bitcoin, with altcoins additionally resulting from undergo.

“I stated 25k will occur. I stated that ALTS will make new lows. I’m now saying $BTC will nuke to 19-23k,” he wrote in an X publish. 

“This transfer down is way from over. Ignore the ETF narrative. It’s solely used to govern the market. Quickly it will likely be time to purchase.” 

Ghinea referenced the continued battle to launch the US’ first Bitcoin spot value exchange-traded fund (ETF) — a key low-timeframe volatility source in latest weeks.

Greenback stokes crypto, threat asset considerations

Wanting past crypto markets, the U.S. greenback offered a compelling case for suppression throughout threat property.

Associated: Bitcoin price can hit $46K by 2024 halving — Interview with Filbfilb

The U.S. Greenback Index (DXY), having broken through local highs seen in late Could, hit 105.15 on Sept. 7 — its highest since March 10.

U.S. greenback index (DXY) 1-day chart. Supply: TradingView

“This rally by the greenback will proceed to be a drain on threat property, particularly these the furthest up the danger curve (i.e. crypto),” analyst Benjamin Cowen wrote in a part of X evaluation.

TraderSZ continued the theme, forecasting draw back for U.S. equities by the hands of DXY power.

“Value motion for the U.S. Greenback Index #DXY is extraordinarily bullish (and subsequently bearish for monetary property),” Caleb Franzen, senior analyst at Cubic Analytics, added.

“When it broke above the 200-day shifting common cloud & the trendline from 2022 highs, I stated it was necessary to hear. Now we’ve flipped them into help.” 

An accompanying chart confirmed the DXY 200-day easy and exponential shifting averages.

U.S. Greenback Index (DXY) chart with shifting averages. Supply: Caleb Franzen/X

This text doesn’t comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails threat, and readers ought to conduct their very own analysis when making a call.