The U.S. dollar index (DXY) is showing signs of a short-term top as the price of Bitcoin (BTC) demonstrates signals of a short-term rally. There is a narrative that the price of Bitcoin often coincides with a drop in the value of the dollar. Since stores of value, like gold and Bitcoin are priced against the dollar, theoretically, a downtrend in the DXY would likely have a positive impact on the price of BTC.
As the dollar began to consolidate, Bitcoin broke above $50,000 on March 3, putting it on track to retest the $51,600 resistance level once again. Above $51,600, there is little resistance until $56,000. Hence, breaking past this level is critical to secure upside momentum in the short term. Bitcoin Jack, a semi-pseudonymous trader, who predicted the $3,600 bottom in March 2020, said:
If Bitcoin continues to rally as the dollar stagnates, it could allow BTC to simultaneously benefit from two macro factors. First, the dollar’s decline naturally benefits Bitcoin. Second, the impending $1.9 trillion dollar U.S. stimulus could serve as a catalyst for a broader BTC rally while diluting the value of the dollar. Bitcoin likely slumped in the past week due to the shaky macro climate, as the dollar began to climb and bond yields rose to a yearly high.
If the macroeconomic conditions were the major catalyst for Bitcoin’s downturn, now that bond yields are easing, it could bouy BTC’s momentum in the coming weeks. According to John Cho, the director of global expansion at Ground X, $42,900 was most likely the local bottom for Bitcoin in the foreseeable future. Cho earlier predicted a short-term Bitcoin downturn, expecting a drop to around $40,000 to $41,000. BTC did not drop that low, but it declined to sub-$43,000, almost completing a 30% drop from its local high.
Following the strong recovery of Bitcoin, it is critical for the dominant cryptocurrency to retest the $56,000 resistance area. Above it, the path toward a new all-time high is open, making $60,000 the next likely target.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 76.8% | 42 | $70 181.59 | -0.59% | 9.12% | $1 380 285 312 968 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 76% | 50 | $3 549.53 | -0.77% | 4.33% | $426 194 485 316 | ||
3 | USDT | Tether predictions | 91.6% | 1 | $1.000206 | 0.07% | -0.01% | $104 525 818 800 | ||
4 | BNB | Binance Coin predictions | 63.6% | 80 | $615.62 | 4.81% | 8.81% | $92 057 057 069 | ||
5 | SOL | Solana predictions | 61.2% | 88 | $185.71 | 0.24% | 7.54% | $82 530 358 500 | ||
6 | XRP | XRP predictions | 84% | 28 | $0.629847 | 1.42% | 2.16% | $34 568 671 339 | ||
7 | USDC | USD Coin predictions | 92% | 2 | $1.000077 | 0% | 0% | $32 492 648 969 | ||
8 | DOGE | Dogecoin predictions | 70% | 66 | $0.213858 | -1.24% | 37.38% | $30 723 668 610 | ||
9 | ADA | Cardano predictions | 67.6% | 66 | $0.652274 | 0.14% | 5.07% | $23 210 538 187 | ||
10 | AVAX | Avalanche predictions | 60.4% | 87 | $53.79 | -0.95% | -1.78% | $20 299 633 012 | ||
11 | SHIB | SHIBA INU predictions | 54.8% | 94 | $0.000031 | -4.56% | 14.80% | $18 193 408 608 | ||
12 | TON | Toncoin predictions | 60.4% | 86 | $4.91 | -0.70% | 14.73% | $17 036 072 542 | ||
13 | DOT | Polkadot predictions | 73.6% | 49 | $9.56 | -0.09% | 5.57% | $13 642 215 721 | ||
14 | BCH | Bitcoin Cash predictions | 74% | 57 | $634.20 | 10.67% | 56.80% | $12 482 514 661 | ||
15 | LINK | Chainlink predictions | 80% | 42 | $18.96 | -3.16% | 5.47% | $11 130 742 548 |
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