“It is taking time for the crypto investors to digest the hawkish comments of the Feds on Wednesday as the bearish sentiment continues. Though there is a slight recovery in the price of Bitcoin making it exchange hands above $37K. Another bearish indication for Bitcoin and crypto in general is the strengthening of the US$.”
The losses for the crypto industry extended further on Thursday as the bearish sentiment continued among the crypto traders and investors due to the hawkish comments by the Feds after Wednesday’s FOMC meeting that reported an increase of interest rates at least 4 times this year. Stock market also fell slightly on Thursday. Bitcoin is showing a slight recovery this morning as it is exchanging hands at $37,220 at the time of writing.
Amidst the bearish crypto movement the US dollar was strengthening and is up by 0.79% as per US Dollar Currency Index (DXY) in the last 24 hours to reach 97.2. The strengthening dollar is considered to be bearish for the crypto industry as history has revealed and crypto and DXY have an inverse correlation between them which was more evident in July last year. Bitcoin’s trading volume has been lowest in the week on Thursday leading to a flat market.
The price action has been moving below the downward sloping 100 day moving average for weeks now indicating a strong selling pressure. The buyers now need to provide the support for Bitcoin between 30K to 37K to build a base for the upward movement in the near future. The fear and greed index still lies in the extreme fear zone but the value is increasing on a daily basis and has reached a value of 24.
Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.
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