As the US dollar continues to rally, bitcoin (BTC) is entering a somewhat raw macroeconomic phase after posting its weakest close in two years. The largest cryptocurrency seems to be registering movements that suggest an upside is coming, putting it on par with the dollar.
Unfavorable scheme for accommodation owners
According to analysts, the nickname September it seems appropriate for the current situation. September has indeed started with a bullish curve as the BTC/USD pair is down 6.2% since the beginning of the month. For holders, the bad news seems to continue, but they continue to cling to the dominant cryptocurrencies. This, even though the dollar is in good shape and the general public seems to be becoming more indifferent to risk assets.
For the past seven days, we have seen a weak weekly close for bitcoin. This, from November 2020. Of course, we are far from the losses recorded during the previous week, but it is clear that the decline continues. Bitcoin turned back to the time before the breakout, allowing it to regain its all-time high. This, during his previous cycle of splitting into two.
The hypothetical November rally
In the case of people who are accommodated, a feeling of deja vu is visible. Those who bought and chose cold storage for their parts in the last two years are now under siege. Many analysts commented on the current situation on Twitter. For SB Investments, BTC made the lowest weekly close in this zone. He adds that this is what investors and hodlers are waiting for, even if the bearish trend continues. For his part, Omz says yes the weekly closing price of $18,800 represents a strong local bottom.
For IncomeSharks, a trend reversal could occur around November. It would therefore take place over the same period as the mid-term elections in the United States. However, he evaded the question of substantive issues and whether the latter had been achieved. Income Sharks also it is important to continue building double bottoms and new supports. For him, the mid-term rally is still possible.
The dollar continues to wreak havoc
for now, the American dollar is leading the dance. It rises as competing currencies continue to fall. This is particularly true of the pound sterling, which fell 5% to close within a few percentage points of parity with the dollar. GBP/USD would follow the Euro which is currently worth less than $1.00 and the Yen remains unbeaten as it is also losing momentum.
EUR/USD fell below $0.96 before a modest rebound. As for the USD/JPY still close to the highest level since the 1990s, despite the Japanese intervention. The worst case can be attributed to global bonds, which fell to the levels of 2020. According to the well-known market commentator Holger Zschaepitz, the bond market bubble has burst. This week alone, the value of global bonds fell by more than $1.2 billion. It is estimated that the loss of the ATH is more than 12.2 billion dollars.
Loaders adjust to carry a market
Amidst all this, the number of Bitcoin owners continues to rise and long-term investors refuse to sell their assets. According to Glassnode, the average number of days of parts destroyed (CDD) has reached a new threshold.. When CDD is high, it usually means that coins that have been stored for a long time are starting to register movement. And this is usually confirmed, because still, according to Glassnode, the total number of Bitcoin coins destroyed in the last 90 days has, indeed, reached a historically low level.
Although the old ones do not want to sell, analysts fear that the biggest investors, namely the whales, will affect the price curves. In fact, large purchases give additional weight to a particular support price. For BTC, the support level to hold is $18,000-19,000.
It should be remembered that among the top 100 cryptocurrencies, BTC is responsible for almost 26% of the discussions listed on Twitter since July. This shows the interest investors have in the coin.
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