Bullish temptation – The price of Bitcoin (BTC) is regaining levels relatively close to $21,000, but this bullish impulse should however be taken with a grain of salt.
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The price of Bitcoin at $20,000: the dollar is facing up
Bitcoin price closed yesterday above $20,000 before dipping back below that level. Cryptocurrency price fell as low as $19,290 on Bitfinex today, July 5, 2022.
He then managed to regain $20,000, to hit an intraday high of $20,723. Bitcoin is trades at $20,469 at the time of writing, and is currently posting a solid daily gain of 3.50%.
The price of Bitcoin suffered a drop of about $1,000as the US Dollar (DXY) climbed above 106.5.
The dollar thus continues to gain strength, to the detriment of risky assets. For senior market analyst at Cubic Analytics, Caleb Franzen, the decline in “yields” in recent weeks and the continued rise of the dollar, reflect the feeling of fear that wins over investors :
“Investors rush to safety, with heightened fears of recession”
Bitcoin bullish recovery: dangerous illusions
The dollar would thus always block the rise of risky assets like Bitcoin. What reading should the markets have, then, of this bullish impulse above $20,700?
Edris, who is a contributor to the on-chain analysis platform CryptoQuant, invites you to prudence in the interpretation of today’s green candlestick.
He points out that the ” Taker Buy Sell ratio or the buy/sell ratio, which indicates whether bulls or bears control the markets, admittedly tilted rather in favor of the buyers during the day.
This rise could nevertheless be a consolidation or a bullish pullback that precedes other declines. Markets must therefore to resist to the temptation to see in this rise, the beginning of a bullish recovery.
Edris mentions the need to look into many other factors in the coming weeks, in order to be able to determine the probability of ” a bullish reversal or other bull trap “.
The bear run could therefore extend after a break that can be relatively long or short. Bitcoin could also experience a short-lived bullish rally that would relieve markets. The field of possibilities, remains at this stage, quite vast.
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