{"id":231284,"date":"2021-04-20T16:17:18","date_gmt":"2021-04-20T13:17:18","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bad-omen-us-dollar-and-bitcoin-are-both-slumping-in-a-rare-trend\/"},"modified":"2021-04-20T16:17:18","modified_gmt":"2021-04-20T13:17:18","slug":"bad-omen-us-dollar-and-bitcoin-are-both-slumping-in-a-rare-trend","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bad-omen-us-dollar-and-bitcoin-are-both-slumping-in-a-rare-trend\/","title":{"rendered":"# Bad omen? US dollar and Bitcoin are both slumping in a rare trend"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3a11b9a4270\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3a11b9a4270\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bad-omen-us-dollar-and-bitcoin-are-both-slumping-in-a-rare-trend\/#Why_is_this_a_concerning_trend\" >Why is this a concerning trend?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bad-omen-us-dollar-and-bitcoin-are-both-slumping-in-a-rare-trend\/#Things_might_change_for_Bitcoin_in_the_near_term\" >Things might change for Bitcoin in the near term<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bad omen? US dollar and Bitcoin are both slumping in a rare trend   <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-5a136f3a>The price of Bitcoin (BTC) was struggling to stay above $56,000 on April 20, which whale clusters pinpointed as a crucial short-term price level.<\/p>\n<p>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.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/190a1ede-573b-43d4-b7dd-c4ac5425a3d2.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>Bitcoin (blue) vs. DXY (orange) Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Why_is_this_a_concerning_trend\"><\/span>Why is this a concerning trend?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Alternative stores of value in the likes of Bitcoin and gold are priced against the U.S. dollar.\u00a0Hence, when the dollar drops, the value of Bitcoin should theoretically increase, as BTC trades against the dollar.<\/p>\n<p>In recent days, however, Bitcoin has performed poorly following the highly anticipated public listing of Coinbase.<\/p>\n<p>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.<\/p>\n<p>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 (the green line in the chart below).\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/4ede2689-7d54-46b7-99e2-481ebfb77fc7.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-day candle chart. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Moreover, some analysts say the dollar may see a relief rally. If this occurs, it should create a less favorable environment for Bitcoin to regain its momentum.<\/p>\n<p>In a note to clients obtained by CNBC,\u00a0Commerzbank strategist You-Na Park-Heger said that the eurozone&#8217;s vaccine optimism and the Federal Reserve&#8217;s firm <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.businesstimes.com.sg\/stocks\/dollar-slumps-after-fed-says-inflation-spike-temporary\" data-amp=\"https:\/\/www-businesstimes-com-sg.cdn.ampproject.org\/c\/s\/www.businesstimes.com.sg\/stocks\/dollar-slumps-after-fed-says-inflation-spike-temporary?amp\">stance<\/a> on inflation likely drove the dollar&#8217;s decline.<\/p>\n<p>While this put an immense amount of pressure on the dollar in the short term, Park-Heger said that the trend could possibly change in the weeks to come.<\/p>\n<p>She <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.cnbc.com\/2021\/04\/20\/forex-markets-dollar-us-treasury-yields.html\" data-amp=\"https:\/\/www-cnbc-com.cdn.ampproject.org\/c\/s\/www.cnbc.com\/amp\/2021\/04\/20\/forex-markets-dollar-us-treasury-yields.html\">said<\/a>:<\/p>\n<blockquote><p>\u201cThe economic recovery in the U.S. might drive up inflation expectations further, fuelling rate hike speculation. The <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a> situation in the euro zone in connection with corona might change again as uncertainty remains high.&#8221;<\/p><\/blockquote>\n<p>But not everyone agrees that the dollar will resume its uptrend. Credit Agricole researcher Valentin Marinov, for example, said that the attractive yields in alternative markets are putting pressure on the dollar.<\/p>\n<p>Marinov <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.reuters.com\/world\/middle-east\/dollar-slumps-6-week-low-with-all-eyes-interest-rate-moves-2021-04-19\/\">explained<\/a>:<\/p>\n<blockquote><p>&#8220;Indeed, the USD rally is all but distant memory by now and the currency&#8217;s underperformance seems to reflect the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>arent divergence in the outlook between the slumping UST yields and the rather perky bond yields elsewhere. This is almost the exact opposite of the moves we saw in March.&#8221;<\/p><\/blockquote>\n<p>10T Holdings co-founder Dan Tapiero also expects more downside for the dollar, stating that its bear market hasn&#8217;t even started.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">How early is it still for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a>?<\/p>\n<p>The US dollar bear market hasn&#8217;t even begun yet.<\/p>\n<p>\u2014 Dan Tapiero (@DTAPCAP) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/DTAPCAP\/status\/1384009190084005889?ref_src=twsrc%5Etfw\">April 19, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In any case, the futures market and high leverage appear to have a more im<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>te impact on Bitcoin&#8217;s price, while a weakening dollar should continue to be a bullish factor for BTC in the medium to long term. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Things_might_change_for_Bitcoin_in_the_near_term\"><\/span>Things might change for Bitcoin in the near term<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the short term, Bitcoin could get a boost from some bullish news and regain technical momentum. For example,\u00a0Venmo&#8217;s support for Bitcoin and Ether\u00a0(ETH) saw its price bounce back to $56,000.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-04\/f9ad4d01-9252-455f-a10e-89a6e6a0b583.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>BTC\/USDT 4-hour price chart (Binance). Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Starting April 20, over 70 million customers will be able to buy, hold and sell crypto directly within the Venmo app as the feature gets rolled out over the next three weeks.<\/p>\n<p>Additionally, WeWork announced it will be\u00a0accepting cryptocurrency payments and holding them on its balance sheet.<\/p>\n<p>In the foreseeable future, this renewed momentum could allow Bitcoin to regain its footing after a week of rare underperformance in tandem with the dollar.\u00a0<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. 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US dollar and Bitcoin are both slumping in a rare trend &#8221; The price of Bitcoin (BTC) was 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&#8230;<\/p>\n","protected":false},"author":1,"featured_media":231285,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDQvNDE4OWM2OTItZTQzMS00ZWNlLWE1OWItMTBhOWMwYzYzN2UyLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,76153,74939,73785],"class_list":["post-231284","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-dollar","tag-market-analysis","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/231284","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=231284"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/231284\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/231285"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=231284"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=231284"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=231284"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}