Bitcoin rose above $10,000 in an overnight rally Monday for the first time since May 8, 2020.
The gains surfaced as investors sold the US dollar for riskier assets amid optimism about economic recovery.
Other factors, including the U.S.-China tensions and the stock market’s upside, also contributed to the rally.
Bitcoin rose Monday in a surprising rally that took its price up by almost $1,000 in less than 12 hours.
BTCUSD jumps $10,000 price level | Source: TradingView.com
The benchmark cryptocurrency climbed 10.17 percent to $10,428 ahead of the UTC midnight close. The wild move uphill helped bitcoin break above crucial technical resistances defined by a long-term descending trendline and a $10,000 price level.
It further indicated traders’ likelihood of testing $11,000 in the coming weeks.
Weaker Dollar
The moves in the bitcoin market took its cues from supportive macro fundamentals.
On Monday, the WSJ Dollar Index, which measures the greenback against 16 other currencies, plunged 0.57 percent to 92. Observers noted that investors sold the dollar to buy riskier currencies, a sentiment that may have fueled the bitcoin price rally above $10,000.
WSJ Dollar Index falls in three back-to-back sessions | Source: WSJ
The index was trading at a new year-to-date high – near 97 – in March 2020. The month saw almost every risky asset falling to its record yearly lows amid a global market rout. The meltdown appeared as major economies entered a lockdown stage amid a fast-spreading virus pandemic.
Investors sold other assets, including Bitcoin, to seek safety in the US dollar.
But the situation is now flipping back towards normal. The number of infections and deaths caused by the virus dropped in the U.S. Europe, and China. It prompted governments to ease lockdown restrictions, leading to a modest rise in factory activity.
Chris Turner, the head of the Forex strategy at ING Bank, said the confidence is slowly returning into the market, which is prompting investors to short the dollar and move into riskier alternatives. The fiat homecoming, overall, is leaving Bitcoin in a healthier state.
The U.S.-China Rift
Bitcoin’s tick above $10,000 also appeared against the backdrop of an escalating geopolitical rift between the U.S. and China.
Traders pinned their sentiments on Donald Trump’s repeated warnings to Beijing over their controversial Hong Kong security law. While the U.S. president is yet to take substantial action against the mainland, investors have already started weighing in the possibilities of yet another trade war.
The sentiment surfaced after China ordered its regional companies to temporarily stop the purchasing of U.S. farm products, including soybeans.
“If it is true China will buy [fewer] soybeans, it will increase the chances of escalation with the U.S.,” Seema Shah, chief strategist at Principal Global Investors, told WSJ.
Bitcoin tends to react positively against a trade war. The cryptocurrency rose by more than 200 percent against the one that started in 2019. Traders believe it would perform a similar upside stunt as worries over the new “cold war” between the U.S. and China rise. origin »
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The post All Eyes on Bitcoin as US Dollar Index Hits 2024 Lows appeared first on BeInCrypto.
Renowned Economist Peter Schiff has warned about an imminent fall in the US Dollar and the country’s economy. If his warning is anything to go by, then a case could be made for cryptocurrencies and Bitcoin in particular.
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The post Why New CPI Inflation Data Is Bullish for US Dollar and Bearish for S&P 500 and Bitcoin appeared first on BeInCrypto.
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The post Fidelity offers bullish views on Bitcoin amid rising dollar appeared first on CryptoSlate.
In this episode of NewsBTC’s daily technical analysis videos, we examine yesterday’s perfected TD9 buy setup in Bitcoin and other potentially bullish signals. We also compare BTC against the dollar using the DXY Dollar Currency Index.
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Hate all you want; the US dollar is still the most dominant force in finance, and the global reserve currency. It is the de facto base currency in most trading pairs, even against Bitcoin. Because of this, when the dollar moves, so does the rest of the market. Find out why the dollar could be […]
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The post Swiss committee proposes banks hold a dollar for every dollar in Bitcoin exposure appeared first on CryptoSlate.
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The year was 2009 and the dollar had just recovered from The Great Recession. Bitcoin was born and grew up while the dollar regained its throne. After ten years of strengthening, the pandemic and associated monetary response to sustain the economy, caused the almighty dollar to weaken again.
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As President Donald Trump presides over geopolitical shape-shifting as the poster boy of separatist politics, the most significant clapback yet may be loss of confidence in the U. S. dollar. The dollar has been politically weaponized in the service of American interests and now other global powerhouses are betting on taking back control of their economies […]
The post Bitcoin Primely Positioned as U.
Key Points Bitcoin price failed to correct higher above the $3,840 and $3,900 levels against the US Dollar. There is a major bearish trend line in place with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Bitcoin (BTC) is currently being traded all over the world against many different fiat currencies. The dominant currency traded against Bitcoin is now the Japanese Yen. However, the US Dollar has been the dominant currency for several months.
Key Points Bitcoin price corrected lower recently and traded below the $3,800 support against the US Dollar. There was a break above a short term declining channel with resistance at $3,800 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The U. S. Dollar (USD) and the Japanese Yen (JPY) are the two most dominant national currencies used in Bitcoin/fiat trading. But while the USD has always dominated the market, it appears BTC/JPY may now be on the verge of overtaking the dollar.
At the end of May, a cryptocurrency exchange Bittrex got banking agreement that allows some clients to trade in USA dollars. According to the exchange’s announcements in Twitter account, Bittrex will launch US Dollar (USD) markets for Bitcoin SV (BSV) an Basic Attention Token (BAT) on December 27.
Key Points Bitcoin price struggled to gain pace above the $4,240 level and declined recently against the US Dollar. There was a break below a major bullish trend line with support at $4,020 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Bitcoin cash price declined sharply after trading above the $230 resistance against the US Dollar. BCH/USD broke the $200 and $175 support levels, and it could even test $120. Key Talking Points Bitcoin cash price failed to clear the $240 resistance and declined sharply against the US Dollar.
There has been a lot of pairing going on in the crypto market ever since it’s evolution 10 years ago. One of the most trading pairs for Bitcoin in terms of fiat has been the US dollar. But now, the Japanese Yen has surpassed USD in Japan as the most fiat trading pair for Bitcoin.
Key Points Bitcoin price traded higher and broke the $4,150 and $4,200 resistance levels against the US Dollar. There was a break above a major bearish trend line with resistance at $4,040 on the hourly chart of the BTC/USD pair (data feed from Kraken).
Bitcoin price is consolidating above the $95,000 support zone. BTC must settle above the $100,000 level to start a fresh increase in the near term. Bitcoin started a fresh increase from the $94,200 zone.
Bitcoin price started a fresh upward move above $100,000. BTC is facing resistance at $103,000 and might aim for an upside break. Bitcoin started a decent upward move above the $100,000 zone. The price is trading below $103,200 and the 100 hourly Simple moving average.
Bitcoin price settled above the $100,500 resistance zone. BTC is consolidating gains and might aim for a fresh increase above the $105,000 zone. Bitcoin started a downside correction from the $106,800 zone.
Bitcoin price started a short-term downside correction from the $106,250 zone. BTC is consolidating above $100,000 and might aim for a fresh increase. Bitcoin started a downside correction from the $106,250 zone.
