In the stormy seas of cryptomarkets, the Bitcoin price is hugging a long-term trendline which poses the “million-dollar” question: Will Bitcoin hold above the key 200-Week EMA (Exponential Moving Average) value of $25,670? TradingView data shows the price hovering around $25,700. Despite less volatility than previous records, caution remains the order of the day among market participants. The buzz among traders hints at possible new lows, with attempts at scaling out should the May low be overtaken.
In contrast to cryptocurrency markets, the U.S. dollar has been flexing its muscles, hitting a 6-month high of 105.15, as per the TradingView U.S. Dollar Index data. A strengthened dollar could theoretically suck momentum out of risk assets such as crypto. Some analysts, like Caleb Franzen, have begun to predict a downside for U.S. equities in response to this dollar strength.
The upward surge of the dollar comes hand in hand with the ongoing effort to launch the United States’ first Bitcoin spot price exchange-traded fund, or ETF. However, there is dissenting opinion in the crypto community about the impact of such a financial instrument on the market volatility. Some industry insiders argue that the narrative could be a smokescreen for market manipulation.
However, this raises the question: Could this context of a bullish dollar and lingering doubts about ETFs pose a threat to Bitcoin and other cryptocurrencies? The crypto world is split in its response. One camp is setting its sights on potential losses, with analyst Toni Ghinea at the helm suggesting a plummet to somewhere between $19,000 – $23,000 for Bitcoin. According to him, altcoins may also face a considerable downturn.
On the other hand, betting against Bitcoin has proven to be a perilous endeavor in the past. Despite the mounting uncertainty, Bitcoin has demonstrated a remarkable ability to bounce back from market downturns, often reaching new highs. Whether history will repeat itself or the skeptics will be proven right, only time will tell. Crypto enthusiasts, meanwhile, will be watching the markets with bated breath, always prepared for the unexpected twists and turns that characterize this dynamic industry.
Source: Cointelegraph
