Bitcoin (BTC) successfully avoided further losses on Thursday evening, while the stock market lost today, July 14, with the opening of trading on Wall Street.
Bitcoin Price Chart (Bitstamp). Source: TradingView
$17,500 not the end yet?
As the data from Cointelegraph Markets Pro and TradingView show, the Bitcoin price has accordingly remained within reach of the $ 20,000 mark.
On Wall Street, meanwhile, the S&P 500 and the Nasdaq Composite Index each suffered losses of 1.8%.
Bitcoin was able to remain stable regardless of this, which means that the market-leading cryptocurrency is pushing the correlation to the stock market to its lowest level in the current year.
Nevertheless, the observers as a whole remain skeptical about the further development.
“The upswing was rather weak, which is why it could soon go down again,” as the analyst Aksel Kibar suspects.
Crypto influencer Michael Suppo, in turn, assumes that a lower low will be set next than $ 17,500, which had marked the intermediate lower limit in June.
“I can’t imagine that $17,500 is the bottom for the Bitcoin price,” as Suppo pessimistically predicts.
Others, meanwhile, are hoping that the higher support areas can hold up at first.
13.7K is a possibility that we’ve been watching for 10 months now. #Bitcoin will not hit 13.7K unless we lose 19.5K as support.
19.5K is holding really well so far. The bottom is likely in or very close to being in but most will miss the bottom while waiting for lower prices pic.twitter.com/AJF5ye0ntn
– Steve Courtney ~ Crypto Crew University (@CryptoCrewU) July 12, 2022
“BTC has already passed most of the downtrend,” as crypto expert Rekt Capital notes a little more optimistically. To which he appends:
“As soon as this trend is over, several months of consolidation will follow.“
The US dollar remains the driving force
From a macroeconomic point of view, the US dollar is still the big topic on Thursday, because it has reached a twenty-year high compared to other national currencies.
These currencies include the euro and the Japanese yen, which have slid to historic lows in the currency pair with the dollar. For the first time, the EUR is below the USD again.
The dollar keeps strengthening, with DXY now at its highest level since 2002. This is a euro story, with fears of recession growing on the heels of a potential gas cutoff, and a yen story, with Japan’s extreme monetary policy divergence. But it’s also the stuff-a-mattress trade pic.twitter.com/tfk9GvTqOM
– Lisa Abramowicz (@lisaabramowicz1) July 12, 2022
At the time of writing, the US Dollar Index (DXY) is at 108.9 points, after a temporary high of 109.29 points was recorded.
US Dollar Index (DXY). Source: TradingView
“No one needs fire insurance during a flood, and no one needs a hedge for the US dollar if the US Central Bank fuels it with key interest rate increases,” as analyst TheHappyHawaiian comments on the rapid rise of the global reserve currency.
However, as Cointelegraph had reported, the expert sees the current monetary policy of the US Central Bank at a turning point, at which it could possibly “blow up” the system if the direction of the march is not changed.