No products in the cart.
- Latest
- Trending
ADVERTISEMENT
Over the past few weeks, Bitcoin’s price has been in a narrow range.
Bitcoin fear and greed index dropped to fear level 25.
The US dollar index plummeted to $103.
Bitcoin’s price remains in a narrow range even as the US Dollar Index (DXY) plummets to its lowest level since June. BTC/USD has been trading at $16,858 for the past few days. The price is more than 70% below the all-time high of nearly $70,000.
Bitcoin and the US dollar have been strongly inversely correlated for the past few years. Bitcoin rises when the US dollar retreats most of the time.
This negative correlation has faded recently as Bitcoin and the US dollar have continued to fall. The US dollar index plunged from its year-to-date high above $115.
Even after a relatively hawkish Federal Reserve, it has crashed in the past few months. At his December meeting, the Fed decided to hike rates by 0.50% following his 0.75% rate hike in the last four meetings.You can read more about the Federal Reserve’s decision Here.
The Fed has also hinted that it will continue to raise interest rates in the coming months. Recent figures support higher rates. For example, the economy expanded by 3% in the third quarter after two consecutive quarters of weakness, according to data released last week.
Additional data reveal that inflation is declining at a relatively slow pace. On Friday, the Fed’s favorite inflation gauge showed it fell in November as gasoline prices eased.
Bitcoin prices are also falling as the Fear and Greed Index continues to come under pressure. Bitcoin’s fear gauge, which is closely monitored, remains below 30, meaning investors are fearful of the state of the market.
Outflow is, in my view, the most accurate fear gauge. Binance has seen him withdraw over $9 billion in the last 30 days.Similarly, major cipher Banks like Silvergate are experiencing their largest outflows in history.
So is it safe to buy bitcoin? The 4H chart shows that BTC price has been in a narrow range over the past few weeks, hovering at the 16,800 level this month. Bitcoin’s Relative Strength Index (RSI) has approached its neutral point of 50.
So, despite the collapse of the US dollar index, a bearish breakout could happen soon. If this happens, the next key support level to watch will be $15,435, the lowest level in 2022. A drop below that level means there are still many sellers in the market.
eToro
eToro offers a wide range of cryptocurrencies such as Bitcoin, XRP, as well as crypto-fiat and crypto-crypto pairs. eToro users can connect, learn, copy, and be copied by others.
Buy BTC on eToro Today
bit stamp
Bitstamp is a leading cryptocurrency exchange that offers trading fiat or popular cryptocurrencies. Bitstamp is a fully regulated company that offers its users an intuitive interface, high security of their digital assets, excellent customer support and multiple withdrawal methods.
Buy BTC now on Bitstamp
