Bad omen? US dollar and Bitcoin are both slumping in a rare trend
April 20, 2021. Summarized by summa-bot.
Compression ratio: 27.2%. 1 min read.
Bitcoin struggled to see strong technical momentum while the dollar dropped to a seven-week low, but it is too early to expect a prolonged BTC pullback.
The price of Bitcoin (BTC) has been struggling to stay above $56,000 on April 20, which whale clusters pinpointed as a crucial short-term price level. Yet the U. S. dollar index (DXY) has continued to fall in recent weeks, dropping to its lowest point in seven weeks to 90. 85. Bitcoin (blue) vs.
Hence, when the dollar drops, the value of Bitcoin should theoretically increase as BTC trades against the dollar. In recent days, however, Bitcoin has performed poorly following the highly anticipated public listing of Coinbase. The trend is concerning because the probability is higher for Bitcoin to see an uptrend when the dollar is declining as shown by the inverse relationship in the chart above. But in recent days, Bitcoin has been having a hard time remaining above a key whale cluster level at $56,000, which indicates that there is heavy selling pressure on BTC, particularly as the price is struggling to rebound above the 50-day moving average (green line in the chart below).