Bitcoin has been declining continuously for a while, which has not changed even as the dollar faces new lows. Some indicators show that the dollar has been at its lowest in the past seven weeks and that weakness should have boosted Bitcoin’s growth. However, Bitcoin and the dollar face similar falls, and it has taken the currencies to lower points.
Bitcoin continues to have problems moving towards the $56,000 mark, and that includes it continues falls through the $55,000 mark. The crypto started the day with the $55,800 range but was short-lived as it declined towards the $55,022 price point. Current analysis from the recent whale cluster has drawn attention to the $56,000 mark, and this point holds a fundamental support level.
Dollar hits lowest low in past weeks
The dollar faces a similar decline as analysts show how the US Dollar Index has been at one of its lowest in close to two months. The American dollar’s index is around 90.85, which could mean that the currency could face more declines. Experts have tried to understand the rationale behind the rare occurrence by putting prices of other valuable assets against the currency.
Some of the assets put against the currency are gold and BTC. Naturally, when the dollar falls, Bitcoin’s price should increase as it’s a hedge against inflation. This theory has not been happening in recent times as Bitcoin continues to decline alongside the currency.
Some people linked the recent falls to Coinbase’s new listing as most of the declines came after the business officially announced that it was listed on the Nasdaq. Bitcoin holders and investors are worried about the new happenings as Bitcoin has an inverse relationship with the US dollar. The asset is supposed to see new gains when the dollar falls, which has not been the case for the past weeks.
New analysis shows that the cluster whale is the biggest challenge the coin faces in its path to move above the $56,000 mark. The crypto has continually fallen when it gets close to the price point but falls to take the mark.
Growing selling pressure caused Bitcoin’s decline
It’s safe to note that the growing selling pressure could have caused the new price decline. There is massive pressure on the asset around the price mark, which has prevented it from moving up the charts. The coin has failed to move above the 50-day moving average, and its movement above the level could assure it more bullish strength to reclaim lost levels. It’s safe to note that there is a possibility that the dollar would move up the charts, and this would likely lead to price declines for Bitcoin.
New information from CNCB shows that the United State’s legislation and reserve could have caused inflation and the price decline of the dollar. The dollar could likely rally after these weeks of price drops, and that would push dollar holders at a better position compared to Bitcoin investors. Still, the COVID-19 and global inflation could stop the rally and even cause more price declines.