{"id":10699,"date":"2023-03-03T13:49:09","date_gmt":"2023-03-03T13:49:09","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=10699"},"modified":"2023-03-03T13:49:10","modified_gmt":"2023-03-03T13:49:10","slug":"dollars-sharp-recovery-puts-bitcoins-25k-breakout-prospects-at-risk","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=10699","title":{"rendered":"Dollar\u2019s sharp recovery puts Bitcoin\u2019s $25K breakout prospects at risk"},"content":{"rendered":"<script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script>\n<p>Bitcoin (BTC) investors reeling from the shock of recent cryptocurrency company failures and banking issues may face another potential problem: a recovering United States dollar.<\/p>\n<h2>US dollar strength reemerges<\/h2>\n<p>Notably, the U.S. Dollar Index (DXY), which tracks the greenback\u2019s performance against a basket of top foreign currencies, has risen 4% from its Feb. 3 low of 100.82, amid anticipations that the U.S. Federal Reserve will continue raising benchmark rates to cool inflation.<\/p>\n<h3>Inflation persists<\/h3>\n<p>An air of caution remains as fresh U.S. data shows a recession is not yet imminent. <\/p>\n<p>That includes the latest jobless claims, which fell 2,000 to a seasonally adjusted 190,000 in the week ending Feb. 25, and stronger consumer spending in January.\u00a0<\/p>\n<p>Meanwhile, 90% of the U.S. manufacturers surveyed by Bloomberg complained about rising input prices despite the easing supply-chain problems.<\/p>\n<p><em>ISM manufacturing prices paid. Source: Bloomberg<\/em><\/p>\n<p>While the problem is not as severe as during the pandemic, the survey shows inflationary pressure has not gone away despite the Fed\u2019s aggressive rate hikes.<\/p>\n<p>\u201cRecent data suggest that consumer spending isn\u2019t slowing that much, that the labor market continues to run unsustainably hot, and that inflation is not coming down as fast as I thought,\u201d noted\u00a0Fed Governor Christopher Waller, adding:<\/p>\n<p>\u201cIf those data reports continue to come in too hot, the policy target range will have to be raised this year even more.\u201c<\/p>\n<p>Bank of America Global Research anticipates the Fed to raise the interest rate to almost 6% from the current 4.5\u20134.75% range. Theoretically, it should renew investors\u2019 demand for the dollar by putting downside pressure on \u201criskier\u201d assets like Bitcoin.<\/p>\n<h3>DXY chart paints inverse head-and-shoulders<\/h3>\n<p>From a technical perspective, the U.S. Dollar Index looks poised to rise by more than 4.5% in the coming months due to the formation of a classic bullish reversal pattern.<\/p>\n<p>Dubbed inverse-head-and-shoulders, the pattern develops when the price forms three troughs below a common resistance line (neckline), with the middle trough (head) deeper than the other two (left and right shoulders).<\/p>\n<p><em>DXY daily price chart. Source: TradingView<\/em><\/p>\n<p>An inverse-head-and-shoulders pattern resolves after the price breaks above the neckline and rises by as much as the maximum height between the pattern\u2019s lowest level and the neckline. <\/p>\n<p>If the DXY successfully breaks above its neckline of 105.25, the likelihood of an extended recovery toward 109.75 in 2023 will be higher.<\/p>\n<h2>Bitcoin price to retest $20K?<\/h2>\n<p>The stronger dollar prospects come as Bitcoin bulls fail to sustain the price rally in breaking the $25,000 technical resistance level. BTC\u2019s price has tumbled by around 13% since, with macro headwinds being one of the primary reasons.\u00a0<\/p>\n<p>What\u2019s more, concerns over\u00a0Silvergate\u00a0and potential ramifications for the industry have also kept the price in check\u00a0in the past few days.\u00a0\u00a0<\/p>\n<p><strong><em>Related:\u00a0Bitcoin price slides 5% in 60 minutes amid Silvergate uncertainty<\/em><\/strong><\/p>\n<p>\u201cAny liquidity concerns will have a direct impact on market conditions and may affect the access and availability of some client funds,\u201d warned\u00a0John Toro, head of trading at digital-asset exchange Independent Reserve.<\/p>\n<p lang=\"en\" dir=\"ltr\">Crypto headwinds are starting to pile up, and may explain the reason for the recent sell-off. <\/p>\n<p>\u2022 Mt. Gox $BTC unlock<br \/>\u2022 Silvergate<br \/>\u2022 Shanghai $ETH unlock<br \/>\u2022 Hot CPI (50bps now a real possibility)<br \/>\u2022 Asia selling open<br \/>\u2022 Mass liquidations<br \/>\u2022 Stock market weakness (futures red)<\/p>\n<p>\u2014 Miles Deutscher (@milesdeutscher) March 3, 2023<\/p>\n<p>Technically, Bitcoin has maintained its short-term bullish bias by holding strongly above its two key exponential moving averages (EMA): the 50-day EMA (red) near $22,500, and the 200-day EMA (blue) near $21,770.<\/p>\n<p lang=\"en\" dir=\"ltr\">Dumped saved by the 200EMA on daily<\/p>\n<p>As long as we are above it, we gucci &#8211; below we flipping burgers $BTC pic.twitter.com\/NuFL2v8V5w<\/p>\n<p>\u2014 Teddy (@TeddyCleps) March 3, 2023<\/p>\n<p>However, traders should watch for a potential break below the EMAs, which, coupled with rising rates and additional negative news, could see the BTC price retesting the key $20,000\u00a0support level in the coming weeks.<\/p>\n<p class=\"post-content__disclaimer\">This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.\n<\/p>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/cointelegraph.com\/news\/dollar-s-sharp-recovery-puts-bitcoin-s-25k-breakout-prospects-at-risk\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin (BTC) investors reeling from the shock of recent cryptocurrency company failures and banking issues may face another potential problem: a recovering United States dollar. US dollar strength reemerges Notably, the U.S. Dollar Index (DXY), which tracks the greenback\u2019s performance against a basket of top foreign currencies, has risen 4% from its Feb. 3 low [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":10700,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[2],"tags":[],"class_list":["post-10699","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10699","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=10699"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10699\/revisions"}],"predecessor-version":[{"id":10701,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/10699\/revisions\/10701"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/10700"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=10699"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=10699"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=10699"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}