After the large fluctuation in the bitcoin price, which is around $ 50,000 recently, Bitcoin faced a drop below this level and the price reached $ 46,000 before Bitcoin rebounded again and rose 4% in the past 24 hours to trade at $ 49,030. At the time of writing this article, according to “coingecko”.
Mr. Joseph Young, a cryptocurrency analyst, believes that Bitcoin deals cautiously based on the rise in the dollar, and this may lead to the unification of the bitcoin price and its movement with the rest of the financial markets in the short term, and he explained this by saying:
Bitcoin is on caution because the global macro stops the risk and pushes the dollar higher.
Both equity markets in the US and Asia are significantly lower.
Expect more consolidation with it in the short term.
The dollar’s rally is not good news for Bitcoin as the two have an inverse relationship, as many analysts have made clear.
For example, with Bitcoin rising more than 295% in late 2020, the US dollar index (DXY) plunged to its lowest level in 32 months.
Late last month, Bitcoin slumped more than 20% in just one week as bond yields soared and risky assets exposed a global sell-off.
Now the higher cryptocurrency found itself in a similar path this time and if the dollar’s rally continues, the level of 37 to 39 thousand dollars could be the final bottom, according to cryptocurrency trader Michael Van DePope, who was told that the bitcoin’s bullish trend is alive. If Bitcoin manages to hold above the $ 50,000 barrier.
If he fails to do so, then the worst-case scenario will lead to a drop to the $ 37-39K level.
And his analysis was as follows:
The Bitcoin scenario unfolds here.
I assume we will have to break the $ 50,000 barrier in order to maintain the bullish scenario.
If Bitcoin fails to maintain the $ 50K level in support and for an extended period of time, I would expect a test of $ 42,000 to $ 44,000 and possibly $ 37,000 to $ 39,000 for the final bottom.
The current drop in Bitcoin has also been linked to the fact that Federal Reserve Chairman Jerome Powell assured that the central bank’s monetary strategy with regard to inflation will not change.
He indicated that the Fed would maintain its target of keeping inflation above the 2% target level.
After its announcement, the Bitcoin price fell, with the recovery resuming at the present time and trying to rise again above the $ 50 thousand level.