Despite the strength of the US dollar: Bitcoin may have reached the support zone

gold and silver round coin

The USD index has been rising since Thursday and rose to 113 points on Sunday. Then it broke the 114 point mark at the beginning of the week, a very positive development for the US dollar. BTC course responded positively, even if there are clear cuts again today. However, if it does not go further down, a strong support zone could be found.

Strong US dollar: this is how the BTC course reacts

Bitcoin price first traded at $19,400 yesterday, before rising 2% to $19,800 during the day. Yesterday, the price rose another 5% and broke the USD 20,000 mark again. Meanwhile, the value was worth 20,981 USD. Today, however, the price of Bitcoin is quickly losing a good eight percent again and falling below the USD 19,000 mark again.

Admittedly, the developments for the front tire over the past month have not looked very attractive. In mid-August, the price fell below the USD 20,000 mark within a few days, and the price then began September at just over USD 18,000. These uncertainties seem to have affected investor sentiment, resulting in fluctuating price movements, with no major uptick to be noted.

The reasons for the reduced numbers are likely to be high inflation, the interest rate increase from last week and the falling US stock market. Since May, both stocks and cryptocurrencies have lost ground and BTC prices have been moving steadily lower. Although the values ​​of almost all currencies moved lower, the US dollar index showed the opposite and developed positively.

The impact of this USD strength on the value of crypto tokens is hard to miss. In the spring, BTC price still fluctuated between USD 38,000 and USD 42,000, in May it continued to fall and ended at a low of USD 18,113 in June. The course has really had to fight and the forecasts of the analysts have not been particularly good for Bitcoin in recent months.

Caleb Franzen, the chief analyst at Cubic Analytics, assumed at the end of August that Bitcoin would continue to move into negative territory. He announced this on Twitter.

“It feels like bitcoin is heading back towards the lower red zone between $17,800 – $18,900. Is this guaranteed? Of course not, but it’s definitely something I’ll keep an eye on. […] Simply put, every downturn so far has resulted in testing a low relative to a previous reversal. Such ‘cap candles’ are nice price targets when support breaks and a new ‘cap candle’ threatens. The bulls are working towards bucking this trend.”

Based on the developments of the last few days, it could be assumed that bitcoin traders were positioned at a good time to protect the price from a complete decline as the USD index was heading towards a high. However, today shows that the risk is still high. The bears still have the momentum and so far they have made any attempt to break away with quick reactions.

This is how the Bitcoin course could continue

The current chart image can also be assigned to another reading. The previous price path could be broken and the developments could turn into a bullish performance again. That applies if BTC stops sliding. Finally, the cryptocurrency may have once again reached a strong support zone. Market watcher Crypto Rover saw buy arguments again due to yesterday’s breakout.

Most analysts have so far assumed that previous developments would continue and BTC price would react negatively to a rising USD index. Today this model seems to be at the forefront again.

If one does not rely on the current opinion of the experts, but instead keeps in mind the long-term forecasts based on calculations, Bitcoin could soon go very high. Forecasts for the next eight years can be made from historical price analyzes of market sentiment and investor behavior patterns. With this kind of forecast, Bitcoin could see a value of around USD 147,000 next year.

If you rely on the voices of the institutional financial markets, the forecasts look similar, with Bloomberg assuming a value of USD 100,000, which could hit the base this year. Citibank is even predicting that Bitcoin will rise to $318,000 this year.

According to the aforementioned Crypto Rover, the bull run has now begun and Bitcoin could be worth $200,000.

If you trust the majority of analyst opinions, the price of bitcoin could not only recover from the fall in the spring, but emerge stronger from it. It remains to be seen how the coin actually fares, especially after the renewed drop in price. But yesterday’s performance certainly caused a stir and that could have a positive impact on the value of the coin.

Price drivers for Bitcoin can be:

  • The Bitcoin Cycle and a Half
  • News related to crypto adaptations
  • Increase / decrease intake
  • entry of new investors
  • Price increases through FOMO, or FUD
  • Influences from the world of finance

The price of the said cryptocurrency depends on many factors. These then affect the entire market. If negative news affects bitcoin, the price of most altcoins also suffers, vice versa, if the price of BTC rises, other coins should also make profits. Accordingly, the ratio of Bitcoin to the US dollar remains a motivating factor in the overall pricing of the industry.

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