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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism
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Breaking News: Bitcoin Price To Recover $100,000: BTIG Cites Key Reasons For Optimism

Does The U.S. Dollar Rally Pose A Danger For Bitcoin? BTC Loses $20,000 Levels

Reynaldo Marquez
Reynaldo Marquez
Last Updated: June 11, 2024 2:23 pm
2 mins read
Bitcoin Remains At $21K But Bitcoin Cash Surges By 7%

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Bitcoin continues to trade in a tight range with low volatility between the high area north of $19,000 and $20,000. The cryptocurrency is moving about critical support, but macroeconomic factors threaten to push it into previous lows.

Related Reading: Lightning Speed: 5 Ways To Make Money/ Earn Sats Using The Lightning Network

At the time of writing, Bitcoin (BTC) trades at $19,700 with a 1% and 8% loss in the last 24 hours and 7 days, respectively. The cryptocurrency’s performance has been affecting the entire sector as Ethereum (ETH), Binance Coin (BNB), and another retrace to early August levels.

Bitcoin BTC BTCUSDT
BTC’s price moving sideways on the 4-hour chart. Source: BTCUSDT Tradingview

At these low volatile levels, the battle between bulls and bears seems more evident. Bitcoin was able to close its August monthly candle about critical support which could contribute to a potential relief.

However, the U.S. dollar presents a potential short-term hurdle for risk-on assets. Data from a crypto analyst indicates that the currency broke about an important resistance and might make a fresh run into levels last seen in 2003.

As seen below, the U.S. dollar, as measured by the DXY Index, breach the resistance at 109 and could move into a multi-year high of 111 before re-testing previous levels. This breakout must be confirmed by a daily candle close but seems likely to extend as the dollar consolidated below resistance before running higher.

According to crypto analyst Justin Bennett, this U.S. dollar rally poses a risk for digital assets:

The argument against a rally for risk assets is the $DXY, which is breaking above 109.30 today. Need the dollar to cool off for crypto to rally. Remember, though, that the daily close is what matters. Everything in between is noise.

Crypto Bitcoin Dollar 1
DXY Index rallying on the daily chart. Source: Justin Bennett via Twitter

The U.S. dollar has been a constant obstacle for risk-on assets, such as Bitcoin. The cryptocurrency is displaying a negative correlation with the currency as investors flee into it to protect themselves from financial uncertainty.

Bitcoin And Equities On The Ropes

In that sense, traditional equities, positively correlated with Bitcoin and crypto, have been re-testing local support over today’s trading session. The S&P 500 is testing the 3,900-support presenting a falling wedge pattern that Bennett believes could provide room for crypto and stock relief bounce.

The expert expects a spike in volatility, a potential decompression from this week’s slow price action, as the U.S. will publish its Non-Farm Payrolls (NFP). As NewsBTC reported yesterday, this metric and the Consumer Price Index (CPI) will dictate a lot of the upcoming Fed decisions.

Related Reading: TRON Volume And Market Cap Down Despite Social Media Hype

If the NFP misses market expectations, as analysis from trading firm QCP Capital suggests, the U.S. financial institution might be able to hint at a less aggressive monetary policy. This could support further bullish momentum for Bitcoin and the crypto market.

Crypto Bitcoin Stocks 1
S&P 500 crashing into support on the daily chart. Source: Justin Bennett via Twitter
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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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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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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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