Bitcoin price bounces at $50K amid 4-month highs for DXY

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Bitcoin (BTC) fell Thursday to its lowest level since Aug. 8, March, as a strengthening U.S. dollar added $60,000 to selling pressure.

1 day candlestick chart BTC/USD (Bitstamp) Source: View of the shop

Bitcoin price bounces at $50K amid 4-month highs for DXY

Price of BTCsaved fromof $40,000.

Data from Cointelegraph Markets Pro and Tradingview showed BTC/USD testing $50,000 for the first time since it sealed this level as support earlier this month.

After shedding the $60,000, bitcoin tried to hold higher levels throughout the week, and an overnight selloff finally broke out of the $50,000 support.

The largest crypto-currency fell nearly 10% on the day, with buyers still holding it outside the $40,000 to $50,000 corridor at the time of writing.

The weakness came as news from the US Federal Reserve focused on a possible reduction in monetary policy intervention. The economy has recovered better than expected, said Chairman Jerome Powell.

If we make substantial progress toward our goals, we will gradually reduce the amount of Treasury and mortgage-backed securities we have purchased, he told NPR, as quoted by CNBC.

We will withdraw the emergency aid we have provided very gradually, over time and with a high degree of transparency, once the economy has fully recovered.

The dollar was in a rising trend and the DXY had reached its highest level since the 23rd. November realized.

According to Cointelegraph, the performance of DXY and BTC/USD are inversely correlated, despite some declines this year.

Daily candlestick chart of the US Dollar Index (DXY). Source: View of the shop

Bitcoin price bounces at $50K amid 4-month highs for DXY

Resale area

In the cash markets, traders were generally unimpressed with the decline. Significant support remained at $46,000+, which some believe would keep bitcoin from taking bigger losses in a bearish pullback.

They therefore advised using the current climate as a buying opportunity.

Support for buying and selling BTC/USD on Binance. Source: Material displays

Bitcoin price bounces at $50K amid 4-month highs for DXY

While people are screaming about this correction in the markets, you can also get potential entry points, Cointelegraph market analyst Michel van de Poppe told Twitter readers.

Another trader, Scott Melker, suggested that the market is entering oversold territory, which could be a sign that a more permanent reversal is on the way.

Meanwhile, sentiment among institutional investors remained firmly up after Real Vision CEO Rahul Pal revealed that one of Singapore’s sovereign wealth funds has been buying BTC from miners since 2018.

In an interview with Pal Magazine, NYDIG, which offers access to bitcoin through various funds, also confirmed that it is in talks with many unnamed players in the public wealth sector.

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Emilia James
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