Bitcoin price fights for $26K as US dollar strength hits 10-month high
“DXY rocketing greater – to the hinderance of BTC Crypto and other danger possessions,” Matthew Dixon, CEO of crypto rating platform Evai, wrote in part of a reaction.Dixon had previously considered a potential cooling off in DXY strength, providing Bitcoin and altcoins room for a relief bounce.This post does not contain financial investment suggestions or suggestions. Every financial investment and trading relocation includes risk, and readers should perform their own research study when making a choice.
” If true, BTC risks falling into the $22,000-$ 20,000 range,” it added.BTC/ USD annotated chart.” Bitcoin might drawback wick into the ~$ 25000-$ 26000 area on this present relocation down,” he wrote in part of fresh X analysis on the day. Source: TradingViewSince striking 15-month lows in July, DXY has actually climbed 6.5%, displaying strength which traditionally has obstructed threat asset and crypto market performance.Painful grind lower on threat properties as yields and DXY grind greater Going to let this trading session establish more https://t.co/C67I5tJHRH— Skew Δ (@ 52kskew) September 25, 2023
Bitcoin (BTC) hugged $26,000 at the Sep. 24 Wall Street open as a weekly close “nosedive” brought lasting consequences.BTC/ USD 1-hour chart. Source: TradingViewBitcoin needs to preserve support now, analysis saysData from Cointelegraph Markets Pro and TradingView showed BTC price trajectory uncertain after briefly piercing $26,000 support.Sideways weekend trading soon turned sour into the new week, and upset overnight implied that bulls were not able to recoup lost ground. #Bitcoin Weekend rate action wasnt amazing till the later hours on Sunday as expected.Price held around the CME Close cost until futures opened and after that took a nose dive. https://t.co/HgmYShdrjA pic.twitter.com/VAzov8haCJ— Daan Crypto Trades (@DaanCrypto) September 25, 2023
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Other Questions People Ask
What factors are influencing the Bitcoin price as it fights for $26K amidst US dollar strength hitting a 10-month high?
The recent surge in the US dollar index (DXY), which has climbed 6.5% since July, is significantly impacting Bitcoin's price movements. As the DXY strengthens, it traditionally hinders the performance of risk assets, including cryptocurrencies like Bitcoin. Analysts suggest that if this trend continues, Bitcoin could face downward pressure, potentially dropping into the $22,000-$20,000 range if it fails to maintain support around $26,000.
How does the strength of the US dollar affect Bitcoin's price as it struggles to hold above $26K?
The strength of the US dollar often leads to a decrease in demand for Bitcoin and other risk assets, as investors may prefer the stability of the dollar. This inverse relationship is evident in the current market, where the DXY's rise has coincided with Bitcoin's struggle to maintain its position above $26,000. If the dollar continues to strengthen, Bitcoin may face further challenges in recovering lost ground and could see increased volatility in its price.
What are analysts predicting for Bitcoin's price as it battles to stay above $26K with rising DXY?
Analysts are closely monitoring Bitcoin's ability to hold above the critical $26,000 support level amid rising DXY strength. Some experts believe that if Bitcoin cannot maintain this support, it risks falling into a lower trading range between $22,000 and $20,000. The market sentiment remains cautious, and traders are advised to keep an eye on DXY movements as they could dictate Bitcoin's short-term price trajectory.
What should investors consider regarding Bitcoin's price action near $26K in light of the US dollar's performance?
Investors should be aware that the current strength of the US dollar could lead to increased volatility in Bitcoin's price as it fights to stay above $26K. The correlation between DXY and Bitcoin suggests that a continued rise in the dollar may pressure Bitcoin lower. Therefore, it's crucial for investors to conduct thorough research and stay updated on market trends before making any trading decisions.