• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy
Nexo

Bitcoin Expects to Hit $14K on Imminent US Dollar ‘Death Cross’

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0

Bitcoin bulls should buckle up as the cryptocurrency prepares for a rally towards its 2019 high at near $14,000.

The expectations of a $2,000-plus jump come as Bitcoin maintains an inverse correlation with the US dollar since March 2020. Back then, the greenback spiked when the COVID-19 pandemic first struck the financial markets, as investors and companies stockpiled cash to survive the health crisis.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

At the same time, Bitcoin crashed by more than 60 percent.

us dollar, bitcoin, btcusdt, btcusd, dxy, xbtusd, cryptocurrency
Bitcoin-DXY correlation since March 2020. Source: TradingView.com

But the bias turned upside down for both the assets after the Federal Reserve committed to purchasing bonds infinitely and slashed interest rates to near-zero. The US dollar index (Symbol: DXY), which measures the greenback against a basket of foreign currencies, lost more than 10 percent of its value after the US central bank’s intervention.

Bitcoin, on the other hand, surged by more than 200 percent. That somewhat confirmed that both the cryptocurrency and the greenback were moving in different directions against the Fed’s monetary support.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

A Very Bearish Dollar Ahead

DXY is now poised to register a fourth consecutive monthly drop on Monday. Observers expect the dollar to move lower after taking cues from the Fed chair Jerome Powell’s speech last Thursday. He confirmed the US central bank’s approach to inflation above its 2 percent target.

Investors interpreted the policy as a signal to lower interest rates for a longer timeframe. That led them to seek safety in riskier assets, sending the US stocks and gold higher. As a wannabe safe-haven asset, Bitcoin also inched higher.

“It seems clear to us that we are at the start of a multi-year period of dollar decline, from very elevated levels,” said Societe Generale strategists Kit Juckes and Olivier Korber.

The US dollar’s technicals repeated a similar bearish scenario, with its weekly outlook suggesting the formation of ‘Death Cross.’

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy
DXY eyes a break towards 88 on an imminent ‘Death Cross’ formation. Source: TradingView.com

A ‘Death Cross’ is a technical chart pattern that forms after an asset’s short-term moving average falls below its long-term moving average. Traders interpret the crossover as a sign of significant sell-off ahead.

The 50-period MA (blue) and 200-period MA (magenta) on DXY’s weekly charts are hinting to form a ‘Death Cross’ in the coming sessions. The likelihood of it happening has increased after DXY broke below its long-term ascending trendline support (red).

The index is now targeting 88.71 as its primary downside target.

Bitcoin to $14K

A falling US dollar is likely to end up making every quoted asset against it more expensive. That includes foreign currencies, stocks, commodities like gold, and even Bitcoin.

Vinny Lingham, chief executive officer at Civic Key, presented a technically bullish picture for the cryptocurrency to explain its likelihood of hitting $14,000. The venture capitalist said that BTC/USD could “overshoot above $15K,” but would then retrace back to $14K “for a few weeks at least.”

“I doubt this sub-$12k price holds for much longer and $10k represents strong support right now,” he added.

bitcoin, cryptocurrency, btcusd, xbtusd, btcusdt, us dollar, us dollar index, dxy
Bitcoin consolidating inside he $10,500-$12,320 region. Source: TradingView.com

Mr. Lingham has earlier supported the idea of lower interest rates and a weaker US dollar boosting demand for Bitcoin.

BTC/USD was trading at $11,676 at the time of this writing, down 0.34 percent into the Monday session.

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

El salvador

44 Countries Set To Meet El Salvador To Discuss Bitcoin, Here’s What We Know

54 mins ago
Crypto Corner: The Sports Slice

Crypto Corner: The Sports Slice

10 hours ago
Goldman

Goldman Sachs And Barclays’ Investment In Elwood Tech A Major Triumph For Crypto Adoption

11 hours ago
Avatars

Avatars For Ukraine – Top Video Game Artists, Celebs Create Poignant NFT Artworks

13 hours ago
Crypto & Gaming: A Look At NRG’s Insights Report

Crypto & Gaming: A Look At NRG’s Insights Report

21 hours ago
Riot Blockchain

Riot Blockchain’s Texas Expansion Could Use Power To Light 200,000 Homes

1 day ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.