Bitcoin trader fears a bear market comeback: Watch the US dollar

Bitcoin (BTC) remained flat at the Wall Street open on Feb. 6 as analysis showed “interesting momentum” in play on the BTC price charts.

Hourly candlestick chart BTC/USD (Bitstamp). Source: Trading View

Bitcoin: The Golden Cross Meets the Cross of Death

Data from Cryptooshala Markets Pro and trade view followed BTC/USD as it ignored the start of US stock trading and stayed around $22,800.

The pair faced sharp volatility as the week closed, leaving levels close to six-month highs above $24,000.

Bitcoin thus worried market participants earlier in the week, with a growing number of them looking forward to a potential retest at or below $20,000.

For on-chain monitoring of the Material Indicators resource, attention is now drawn to two classic chart features: the “golden cross” on daily timeframes and the “death cross” on weekly timeframes.

Representing the interaction between the 50- and 200-day moving averages, golden crosses and death crosses traditionally indicate upcoming bullish and bearish moves, respectively.

Such is their notoriety that automated trading tools can buy or sell as needed if one or both events occur.

“At the moment, the Golden Cross on the Bitcoin D chart could trigger some buying. Similarly, a pending death cross on the W chart will cause some algo trading bots to sell,” wrote in a tweet during the day.

He also noted upcoming comments from Jerome Powell, chairman of the US Federal Reserve. It is expected that on February 7, the hints of inflationary policy present in Powell’s words could easily affect the markets.

Continuing to talk about chart crossovers, Keith Alan, co-founder of Material Indicators, described them as “an interesting developmental dynamic.”

“Bitcoin is heading towards a prominent Golden Cross on the D chart, which is short-term bullish and could trigger buying on some TA algorithms. We are also moving towards the Death Cross on the W chart, which is bearish in the long term,” he said. declared in my own tweet.

BTC/USD charts are marked with golden crosses and death crosses. Source: Keith Alan/Twitter.

Dollar strength recovery is ‘bad news’ for cryptocurrencies

In the macro market, US stocks fell slightly at the open, with the S&P 500 and Nasdaq Composite indexes losing 0.8% and 1.1%, respectively. Asian stocks also ended the day lower.

Is BTC price about to retest $20K? 5 things to know about Bitcoin this week

Meanwhile, the US dollar index (DXY) continued to rebound, threatening further pressure on risky assets.

At the time of writing, the index was trading above 103.6, its highest level since January 9, as analysts began to fear for the health of the crypto rally.

“It looks like the dollar is trying to regain its yearly uptrend,” popular trader and analyst Roman. summarize.

“This is bad news for cryptocurrencies and equities because it will indicate a pullback/continuation of the bear market. This week is very important. Trend rebound, $SPX loses 4100 and I’m back to bearish macros.”

US dollar index (DXY) 1-day candlestick chart. Source: Trading View

The views, thoughts and opinions expressed here are those of the authors only and do not necessarily reflect or represent the views and opinions of Cryptooshala.

Credit :

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker