Bitcoin (BTC) declined below $17,000 at the December 8 Wall Street open as the US Dollar threatened further weakness.
Dollar falls as stocks experience slight rally
Data from Cointelegraph Markets Pro and TradingView showed the BTC/USD pair nearly flat for the 24 hours prior to writing.
In the absence of macroeconomic signals, analysts point to a possible break in the strength of the US dollar as the next volatility catalyst for cryptocurrencies and risk assets.
The US Dollar Index (DXY) looked set to challenge multi-day support, dipping below 105 several times during the day.
“This is the first time $DXY has broken below the 100-day MA since June 21”, he pointed Joe Kariyasare, co-host of the Inside Bitcoin podcast.
Trader and analyst Pierre said that both the DXY and the S&P 500 could trade sideways until the December 13 release of the November Consumer Price Index (CPI).
This event, as Cointelegraph pointed out, is a classic temporal trigger for volatility.
“Meanwhile, both SPX and DXY continue to hover around their respective D1 200 EMAs,” he said. Took In graph comments.
“DXY is turning its resistance so far, while SPX is in the uptrend D1, an important level to defend. They both sound like they want the maximum cut until next week’s CPI.”
In the BTC/USD pair, popular trader Dan Crypto Trades expected an extension of the trading range with liquidity absorbed at both the upside and downside.
“$BTC is in a very tight range here with lots of uncapped highs and lows,” he told his Twitter followers.
“I think all of these levels will be taken out and the initial move will probably be faked to go back and move the other way. That would definitely be a classic bitcoin move.”
The “Last Stage” Of The Bitcoin Bear Market?
During the first hour of trading on Wall Street, US exchanges continued to post modest gains.
As at press time, The S&P 500 index was up 1%, while the Nasdaq Composite index was up 1.2%. The move went on to reflect a day of relief in Asia, where Hong Kong’s Hang Seng ended trading up 3.4%.
However, in the longer term, the outlook for bitcoin remains bearish for many.
Popular commentator Byzantine General announced the possible start of a deep phase of the 2022 bear market.
“Trading volume is now in a very strong downtrend. Market shrinks, speculators capitulate,” wroteReferring to perpetual futures markets.
Data from CoinGlass also showed open interest continuing to decline in futures.
The views, opinions and opinions expressed here are those of the authors alone and do not reflect or represent the views and opinions of Cointelegraph.
Investing in crypto assets is not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed at or accessible to investors in Spain.
