All Eyes on the U.S. Dollar as Bitcoin Attempts to Recover –


  • Bitcoin fell extremely hard over the weekend and into Monday after reaching $42,000 last week.
  • The cryptocurrency’s drop came as the U.S. dollar index bounced around 0.7%.
  • The recovery taking place now also coincided with a drop in the U.S. dollar index.
  • Analysts say that it’s important to keep an eye on this market moving forward.

Bitcoin Could Lose Even More as U.S. Dollar Hits Key Level

Bitcoin fell extremely hard over the weekend and into Monday after reaching $42,000 last week. The cryptocurrency fell from those aforementioned highs to $30,000 in a massive flush lower on Monday, liquidating billions worth of positions.

The drop in the market was based on macro trends, some have indicated.

Bitcoin’s drop on Monday coincided with weakness in the strength of foreign currencies, which had trended higher against the U.S. dollar over the past few months. The U.S. dollar index bounced around 0.7%, which is a large move for a market worth trillions.

How To Get Free Crypto  

BTC’s recovery over the past few hours has also coincided with a drop in the U.S. dollar index.

Many analysts say it is now important to watch where this index goes next to determine the overall direction of the crypto market.

One analyst shared the charts below just recently, noting that Bitcoin’s next move is likely to be determined by the U.S. dollar.

The U.S. dollar rally comes in spite of Joe Biden, the incoming President, calling for additional stimulus for the American people. He said that he wants trillions worth of stimulus for the economy, along with $2,000 stimulus cheques for the people.

The rally in the U.S. dollar may come as a result of Biden’s election win being confirmed by Congress, which may have dissuaded fears of further conflict in the Capitol.

Coinbase Banner  

One Headwind Is Gone

It’s worth noting that one key headwind is gone for Bitcoin, which could fuel a further rally higher.

Willy Woo, an on-chain analyst, said after the correction that the drop was seemingly a byproduct of Coinbase going down. He explained on the matter:

“Spot market sell off started around $38k, then Coinbase partially failed, not registering buys, causing its price to go $350 lower than others, this pulled down the index price that futures exchanges use to calculate leverage funding, wrecking bearish havoc on speculative markets.”

Coinbase is now back up and the funding rate/futures market has restored to some sense of normality.

Bitcoin could resume its ascent higher as this bearish factor is gone.

Other trends that could boost the cryptocurrency include latent institutional buying demand. Analysts commented online that there was a vast amount of accumulation by larger players during today’s drop, as evidenced by order book trends and on-chain data.

Featured Image from Shutterstock
Price tags: xbtusd, btcusd, btcusdt
Charts from
All Eyes on the U.S. Dollar as Bitcoin Attempts to Recover

Go to Source
Author: Nick Chong

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.