Thursday, 20 June 2024

Crypto News

Bitcoin price faces 200-week trendline as US dollar hits 6-month high

Bitcoin price faces 200-week trendline as US dollar hits 6-month high

Bitcoin (BTC) hugged a key long-term trendline on Sep. 7 as U.S. dollar strength hit its highest in six months.

BTC/USD 1-hour chart. Source: TradingView

Bitcoin vs. 200-week moving average forms “million dollar question”

Data from Cointelegraph Markets Pro and TradingView showed BTC price moves focusing on the area around $25,700.

Conditions were less volatile than the day prior, which saw a trip to $26,000 and local lows under $25,400 within a single hourly candle.

Bitcoin market participants remained cautious overall, with predictions of fresh downside to come becoming more and more commonplace.

“$BTC – unless we reclaim may low I still think lower,” popular trader TraderSZ told X subscribers on the day.

“Taken a short here half size targeting 23.6k. If we reclaim May low I will look to scale out.”

BTC/USD annotated chart. Source: TraderSZ/X

Michaël van de Poppe, founder and CEO of trading firm Eight, flagged the 200-week exponential moving average (EMA) at $25,670 as the key level to watch on weekly timeframes.

“The million dollar question is whether Bitcoin holds above the 200-Week EMA,” he summarized.

BTC/USD 1-week chart with 200EMA. Source: TradingView

Fellow trader and analyst Toni Ghinea was more categorical, eyeing $25,000 and lower next for Bitcoin, with altcoins also due to suffer.

“I said 25k will happen. I said that ALTS will make new lows. I’m now saying $BTC will nuke to 19-23k,” he wrote in an X post.

“This move down is far from over. Ignore the ETF narrative. It’s only used to manipulate the market. Soon it will be time to buy.”

Ghinea referenced the ongoing battle to launch the United States’ first Bitcoin spot price exchange-traded fund, or ETF — a key low-timeframe volatility source in recent weeks.

Dollar stokes crypto, risk asset concerns

Looking beyond crypto markets, the U.S. dollar presented a compelling case for suppression across risk assets.

Related: Bitcoin price can hit $46K by 2024 halving — Interview with Filbfilb

The U.S. dollar index (DXY), having broken through local highs seen in late May, hit 105.15 on the day — its highest since March 10.

U.S. dollar index (DXY) 1-day chart. Source: TradingView

“This rally by the dollar will continue to be a…

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