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Breaking News: Celsius Founder Alex Mashinsky Receives 12-Year Prison Sentence

Bitcoin Corrects 17%, But Market Expects Fresh Rally Report Says

Reynaldo Marquez
Reynaldo Marquez
2 years ago
3 mins read
bitcoin

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Bitcoin has been trading in the red over the past few days and seems on track for further losses over the short term. The cryptocurrency gave back a large portion of its profits since the start of August and could re-test support at around $20,000.

Related Reading: Bitcoin Price To See More Dumps, Peter Brandt Forecasts

At the time of writing, Bitcoin (BTC) trades at $21,200 with sideways movement over the past 24 hours and a 13% correction over the past week. Market participants are keenly watching these levels, as the entire crypto market might be hanging by a thread.

Bitcoin BTC BTCUSDT
BTC’s price moving sideways on the daily chart. Source: BTCUSDT Tradingview

In the meantime, all eyes are set on the U.S. dollar, as measured by the DXY Index. The currency tumbled from a yearly high north of 100 and entered a period of accumulation and sideways price action.

Now, bulls are attempting to reclaim levels last seen at the beginning of the millennium as the U.S. dollar approaches 110 and targets 120. Analyst Will Clemente says the following on the U.S. dollar and its potential to hit that mark and record further profits:

DXY screaming higher – can’t even draw a proper parabola looks too ridiculous

Bitcoin DXY Index 1
DXY Index trends to the upside on the monthly chart. Source: William Clemente via Twitter

NewsBTC has been following the DXY’s price action in the past week as Bitcoin and the crypto market seem to be negatively correlated with the currency. In that sense, the more the dollar trend upwards, the further the crypto market could retrace.

Analyst Justin Bennett believes crypto bulls might be set for failure, in the short term, if the DXY Index breaks above the area of 108.70 and 109.30. The currency is approaching a critical resistance zone on the latter level which could provide Bitcoin with some short live relief if the Index is rejected one more time. Bennett added:

The glimmer of hope for risk assets this week is the $DXY approaching a significant area between 108.70 and 109.30. Potential for some USD weakness here, which could mean temporary relief for stocks and crypto. Cue the calls for a DXY double top, which won’t age well, in my opinion.

Bitcoin And Ethereum Bulls Positioning For More Gains

On the potential for a relief rally after the U.S. dollar is rejected from a key trendline, trading firm QCP Capital claims crypto market participants are expecting a resume of the bullish momentum. In total, over the past week, Bitcoin records a 17.7% and Ethereum a 25% correction.

The latter has failed to discourage market participants from taking bullish positions. QCP Capital noticed “continued interest to buy topside” calls options contracts and “also interest in to sell downside”.

On Friday, U.S. Federal Reserve (Fed) representatives will give a speech that could confirm a less aggressive approach to their monetary policy. This could support Bitcoin and Ethereum’s price bullish momentum as the industry prepares for “The Merge”.

Related Reading: Cardano (ADA) Reclaims Strong Buy Territory – Here’s How

This event will complete Ethereum’s transition as a Proof-of-Stake (PoS) consensus and has created a lot of hype in the crypto market. In the short term, QCP Capital said: “we continue to expect the markets to trade sideways in the near term”.

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Reynaldo Marquez
Reynaldo Marquez

Reynaldo Marquez

A literature major, Reynaldo Márquez has been deeply immersed in the crypto industry since 2017. His journey began with translating articles for various crypto news outlets, a role he took on with zeal. In 2018, amidst a challenging market, he embraced his first writing assignment, demonstrating his unwavering commitment to the nascent industry and the promise of change it bears for many people worldwide.
In March 2021, he joined the prestigious crypto news outlet NewsBTC and Bitcoinist, where he not only reported on the latest crypto news but also had the privilege of interviewing some of the industry's most influential figures. A year later, his dedication and hard work were recognized, and he was promoted to Managing Editor, a position he currently holds with pride.
He believes in honesty, good communication, hard work, and the power of cryptocurrency and its potential to transform people's lives, especially those alienated by the legacy financial system. Born in 1992 in Venezuela, Reynaldo is familiar with how governments and central banks can negatively affect people, their everyday lives, and their futures by creating inflation and erasing their hopes for a better future. Thus, like many Venezuelans, he embraced this new technology to help him and his family navigate difficult times.
In another life, Reynaldo would have pursued a career as an investigator, most likely tracking down the origins of the Cyberpunk movement with the publication of William Gibson’s ‘Neuromancer.’ The intersection between fiction and reality, with the materialization of Bitcoin in 2009, would have allowed him to dive deep into the crypto sphere as something more than a financial phenomenon but also a cultural shift in society that was brewing since the XX century, and maybe even sooner, in the XIX century with the publication of Henry David Thoreau’s ‘Civil Disobedience.’
But that’s for another life. In this one, Reynaldo has been trading to improve his trading skills. Since 2023, he has been trying to learn Python to create successful strategies and find ways to execute them. It is a difficult task, which continues to keep him busy today and will most likely continue to keep him busy in the near and long term.
In his free time, he enjoys lifting heavy objects, reading, watching movies, and listening to his favorite music. Some of his favorite authors are Walt Whitman, William Faulkner, Allen Ginsberg, James Baldwin, Raymond Carver, Ray Bradbury, George Orwell, Mario Vargas Llosa, Reinaldo Arenas, Rafael Cadenas, and many others. Lately, he has been primarily interested in reading about dystopic societies, a topic that deeply resonates with the crypto industry.
Since 2023, he has lived in Spain with his wife. He loves the weather, the food, and the people and their culture. They both expect to travel much more within the country they now call home and beyond its border. He hopes to retire with his wife, maybe in a quiet place near a beach, but most likely in a city close to a library and a university with his kids and, hopefully, grandkids.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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