Bitcoin Price Outlook: Potential for Losses Amidst Strengthening US Dollar

Bitcoin's Price Outlook: Potential for Losses Amidst Strengthening US Dollar
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On the four-hour timeframe, Bitcoin (BTC) is trading at $26,267 with a bearish bias. As big SMAs face tough resistance on the upswing, the technical structure suggests 5% further losses. Investors’ concerns about the influence of the US dollar on the large crypto may be exaggerated, especially in the long run.

On Friday last week, the US Dollar Index (DXY) reached its highest level in nearly ten months, reflecting increased confidence in the US dollar relative to other fiat currencies such as the British pound (GBP), Euro (EUR), and Japanese yen (JPY).

Bitcoin Price Outlook: Potential for Losses Amidst Strengthening US Dollar

After a golden cross formed on the daily chart (see below), the US dollar became even more bullish. When the 50-day moving average crosses over the 200-day MA, this is a bullish indication. This is frequently interpreted as a precursor to a strong rally in technical analysis.

As a result, investors are concerned about the impact of a strong dollar on Bitcoin and the whole cryptocurrency industry. At the moment, the BTC price appears weak as it falls below all important levels, with the $26,000 support level under threat of being breached.

Bitcoin Price Faces More Losses to $25,000

On the four-hour chart, BTC price movement had resulted in the construction of an inverted V-shaped pattern.

The pioneer cryptocurrency was receiving rapid support from the psychological level of $26,000.

A four-hour candlestick closure below this level would cause the price to fall to $15,600, completing the V-shaped pattern.

If this level is breached, sellers will move BTC lower, accumulating demand side liquidity below it toward the $25,000 psychological threshold. This would imply a 4.66% decrease from the current pricing.

The flagship cryptocurrency was also seeing significant hurdles on its road to recovery. If the Bitcoin price rises from its current level, it will encounter the first hurdle at $26,450, which is supported by both the 100 and 20 SMAs.

It’s worth noting that the 20 SMA had just delivered a sell signal when it crossed below the 100 SMA. This bolstered the bad narrative surrounding BTC.

Additional restrictions exist at the $26,725 SMA and the $27,000 psychological level. Rising higher would bring the swing high of $27,500 into play.

Disclaimer:

The information provided in this article is for educational and informational purposes only. It does not constitute financial, investment, or professional advice.

Cryptocurrency markets are highly volatile and can involve substantial risks. Before making any financial decisions or investments, it is essential to conduct thorough research and consult with a qualified financial advisor.

The author and this platform do not endorse or recommend any specific cryptocurrency investment or strategy. Any actions taken based on the information in this article are the sole responsibility of the reader, and the author and this platform shall not be held liable for any losses or damages incurred as a result of such actions.

Cryptocurrency investments carry inherent risks, including the risk of losing the entire investment.

Prices of cryptocurrencies can fluctuate rapidly and unpredictably, and past performance is not indicative of future results.

Readers should exercise caution and diligence when engaging in cryptocurrency-related activities and should seek professional advice as needed. Always be aware of the regulatory environment in your jurisdiction, as cryptocurrency laws and regulations may vary.

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Bitcoin Price Outlook: Potential for Losses Amidst Strengthening US Dollar

Techno Tropics

Techno Tropics is a passionate tech enthusiast and the voice behind it, a leading source for daily updates on AI, big data, analytics, and cryptocurrency. Stay tuned for the latest tech news and insightful analysis.
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