{"id":428142,"date":"2022-04-07T21:20:46","date_gmt":"2022-04-07T18:20:46","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/"},"modified":"2022-04-07T21:20:46","modified_gmt":"2022-04-07T18:20:46","slug":"stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/","title":{"rendered":"# Stronger dollar prospects risk pushing down Bitcoin price to $32K"},"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-6a3843c1cfb01\" 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-6a3843c1cfb01\" 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-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/#%E2%80%9D_Stronger_dollar_prospects_risk_pushing_down_Bitcoin_price_to_32K_%E2%80%9C\" >&#8221; Stronger dollar prospects risk pushing down Bitcoin price to $32K &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/#Dollar_paints_%E2%80%9Cbull_flag%E2%80%9D\" >Dollar paints &#8220;bull flag&#8221;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/#Golden_cross_on_the_weekly_chart\" >Golden cross on the weekly chart<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\/#Where_does_it_leave_Bitcoin\" >Where does it leave Bitcoin?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Stronger_dollar_prospects_risk_pushing_down_Bitcoin_price_to_32K_%E2%80%9C\"><\/span>&#8221; Stronger dollar prospects risk pushing down Bitcoin price to $32K &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-2a0745c6>The U.S. dollar&#8217;s ability to continue its rally in Q2 could prove fatal for Bitcoin (BTC), which has demonstrated an inverse correlation with the dollar since January 2022.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/329d403c-8823-4e4d-947a-78fa973f8879.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily price chart featuring correlation with DXY. Source: TradingView<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Dollar_paints_%E2%80%9Cbull_flag%E2%80%9D\"><\/span>Dollar paints &#8220;bull flag&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The U.S. dollar index (DXY), which measures the greenback&#8217;s strength against a basket of foreign currencies, reached its 21-month trading high of 99.82 on April 7, the highest level since May 2020.\u00a0<\/p>\n<p>The index now looks poised to continue its upside move further as it breaks out of a classic bullish continuation pattern \u2014 called a &#8220;bull flag.&#8221;<\/p>\n<p>In detail, bull flags <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>ear when the price consolidates lower inside a parallel descending channel after undergoing a strong uptrend (called flagpole). In theory, the pattern is resolved after the price breaks out of their range to the upside to reach the level located at a length equal to the flagpole when measured from the breakout point.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/f660fcb4-8832-4092-9606-d2a9ef4f3065.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>DXY daily price chart featuring &#8220;bull flag'&#8221;setup. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>The bull flag setup therefore puts the next upside target for DXY at 101.\u00a0<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Golden_cross_on_the_weekly_chart\"><\/span>Golden cross on the weekly chart<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The DXY index is also forming a bullish\u00a0golden cross\u00a0for the first time since April 2019.<\/p>\n<p>Golden crosses occur when an asset&#8217;s short-term moving average rises above its long-term moving average. Many analysts <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/thepatternsite.com\/KirkInterview.html\">consider<\/a> the crossover as a bullish technical signal due to its history of preceding strong uptrends.<\/p>\n<p>DXY&#8217;s last golden cross between its 50-week and 200-week exponential moving averages (EMAs) came before a 4% upside move. <\/p>\n<p>A similar bullish setup now nears for a 50-200 EMA crossover in April, notes Alexander Mamasidikov, co-founder of crypto wallet service MinePlex.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/e8040dfa-0a66-4f9c-8066-922fbe0af8c4.png\" alt=\"\" title=\"\"><figcaption style=\"text-align: center;\"><em>DXY weekly price chart featuring a golden cross. Source: TradingView<\/em><\/figcaption><\/figure>\n<p>&#8220;The formation of the golden cross on the U.S. dollar index marks a period of temporary strength for the greenback with an expectation for it to tick stronger growth potentials against other currencies,&#8221; he explained, adding: <\/p>\n<blockquote><p>&#8220;The ensuing strength of the U.S. dollar following the golden cross formation will help to stump the impact of inflation as the greenback&#8217;s purchasing power is boosted.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"Where_does_it_leave_Bitcoin\"><\/span>Where does it leave Bitcoin?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Interestingly, Bitcoin has been forming the opposite setup to the dollar, dubbed a bear flag\u00a0\u2014 suggesting more pain ahead for the BTC\/USD pair.<\/p>\n<p><strong><em>Related:\u00a0Bitcoin bulls may have to wait until 2024 for next BTC price \u2018rocket stage\u2019<\/em><\/strong><\/p>\n<p>Bear flags appear when the price consolidates higher inside a parallel ascending channel and resolve after it breaks below the channel&#8217;s lower trendline with convincing volumes. In a &#8220;perfect&#8221; scenario, a bear flag breakout results in the price falling as low as the height of the previous downtrend.\u00a0<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-04\/21221a8d-7e01-4215-b889-87e41ef3a004.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD daily price chart featuring &#8216;bear flag.&#8217; Source: TradingView<\/em><\/figcaption><\/figure>\n<p>Thus, Bitcoin could see a drop to the flag&#8217;s lower trendline around $40,000, opening the door for a drop toward $32,000.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">There it is, now we&#8217;ll check off the 2nd target box on <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24DXY&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$DXY<\/a> drawn months ago.<br \/>&#8211; Daily, Weekly, &amp; Monthly RSI look bullish<br \/>&#8211; Daily, Weekly, &amp; Monthly MACD look bullish<br \/>&#8211; Above 200 W MA since November<br \/>&#8211; May 2020 last time it was this high<\/p>\n<p>Risk off for <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#bitcoin<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\">#crypto<\/a>, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/search?q=%24stocks&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$stocks<\/a>? <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/jzaCOb4fIk\">https:\/\/t.co\/jzaCOb4fIk<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hMEBrxHgW2\">pic.twitter.com\/hMEBrxHgW2<\/a><\/p>\n<p>\u2014 Jesse Olson (@JesseOlson) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/JesseOlson\/status\/1512087611715727379?ref_src=twsrc%5Etfw\">April 7, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Nonetheless,\u00a0Mamasidikov says Bitcoin could hold above $42,500 even if the dollar rises on the other end of the spectrum. <\/p>\n<p>Recalling the adoption boom of summer 2021 (when Bitcoin&#8217;s correlation with the DXY was largely positive), investors continue to hodl BTC as a part of their long-term strategy.<\/p>\n<p>He adds:<\/p>\n<blockquote><p>&#8220;Despite the seeming uncertainty in the market, Bitcoin has formed strong support at $42,500 and has the fundamental backing to retest $47,000 in the short term.&#8221;<\/p><\/blockquote>\n<p class=\"post-content__disclaimer\">The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.\n<\/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. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/stronger-dollar-prospects-risk-pushing-down-bitcoin-price-to-32k\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Stronger dollar prospects risk pushing down Bitcoin price to $32K &#8220; The U.S. dollar&#8217;s ability to continue its rally in Q2 could prove fatal for Bitcoin (BTC), which has demonstrated an inverse correlation with the dollar since January 2022. BTC\/USD daily price chart featuring correlation with DXY. Source: TradingView Dollar paints &#8220;bull flag&#8221; The&#8230;<\/p>\n","protected":false},"author":1,"featured_media":428143,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvY2U1OWMwZTgtMDNiOS00N2FmLTg5ODktN2VlMTA3MjFkYWQ2LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,81951,74937,74982,76153,75582,74939,78261,73711,73785,71407],"class_list":["post-428142","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-analysis","tag-bitcoin-price","tag-btc-markets","tag-dollar","tag-fiat-money","tag-market-analysis","tag-tech-analysis","tag-investments","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/428142","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=428142"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/428142\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/428143"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=428142"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=428142"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=428142"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}