Can BTC stay afloat despite DXY surge and stocks slump?
Both stocks and crypto appear to be under pressure as DXY pushes for new highs. After crossing 111.8, DXY appeared set for a correction, but bounced off again from 110.47 to reach 112.3. This move caused panic selling, with BTC price struggling to maintain $19,000 due to its inverse correlation.
SPX Price Chart. Source: TradingView BTC Price Chart. Source: TradingView
Looking at more bearish macroeconomic factors, the S&P 500 is slowly bleeding out and is down 5% for the week. A test of June lows is becoming more and more likely with the only bullish scenario being a double bottom which will help push the market up. Otherwise, we will likely be seeing sub-$16,000 BTC soon.
Moreover, Powell is said to speak at 14:00 New EST, for the “Fed Listens: Transitioning to the Post-pandemic Economy” event. His comments will receive attention and we could see volatility if he drops hints toward the Fed’s future plans.
Top altcoin gainers and losers
BTC Technical Analysis
BTC got rejected from \(19,500 again, making a double top on the 4H chart. We can also see the Bollinger bands narrowing down, signaling a squeeze that would target \)20,500 if broken towards the upside or $17,700 if it breaks towards the downside. With the momentum that bulls need dying, it is unlikely that we will see relief or any kind of rally before testing June lows.
ETH Technical Analysis
It’s very clear that most of the late shorts have been wiped out In the move up from \(1,220, and as we expected in the earlier updates, it seems rather hard for Ethereum to break out of the \)1,300 range. Currently trading back at \(1,287 bulls will need to watch ETH when it tests the \)1270-1250 support zone. If that breaks down, we expect a cascading effect tanking the price down to sub $1,100 at least.
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Apart from today’s upcoming talk by the Fed Chair, here’s a rundown of the major crypto news.
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.