As the dollar strengthens against other major currencies, one crypto market expert thinks that Bitcoin’s (BTC) chances of an upward breakout are increasing. Bitcoin (BTC) returned to trading in the green on April 28 after a short period of turbulence.
Michal van de Poppe, a crypto trading specialist, believes that the present choppy nature of the Bitcoin price may be due to the significant link between the US Dollar and BTC at this moment.
When Federal Reserve Chairman Jerome Powell first indicated the possibility of rate increases a few weeks ago, Bitcoin’s price fell along with the rest of the market, according to Poppe. This week’s interest rate rises are expected to push the dollar up by 50 basis points (BPS).
“I believe that we’ll have to purchase the rumour and sell the news,” he says. The event is already priced in, so I expect the dollar to max out and then start correcting from there in the days or weeks leading up to it. In this new neutral position, “risk-on assets will continue to do well,” he added.
He went on to say: After reaching a high point in May, Bitcoin’s value fell sharply, while the dollar gained momentum. There have been occasional dips in the Bitcoin market since then, but the underlying trend is good and we’re speeding strongly to the upside. The RSI is also indicating a lengthy run to the upside in these numbers,” he continues.
According to Poppe, the fact that Bitcoin’s Relative Strength Index (RSI) is so high on the DXY and that it has been taking liquidity above DXY highs implies that this is the sole asset to look at at this point in time.
In addition, he said the following about the levels that the analyst considers critical to maintaining a source of support:
Please keep it over $39,000. In the event that that is the case, we will most likely break out of this high and then go on to 43k, which is aligned with the dollar’s weakening.”
According to CoinMarketCap, Bitcoin is now trading at $38,991, up 0.72 percent over the previous 24 hours but down 8.28 percent over the last week.
A bullish Bitcoin price prediction for May 31, 2022, has been established with 83% historical accuracy, so Poppe isn’t alone in his belief that the price of BTC will rise in the next weeks.
Also Read: TON Stewards Add Crypto To Telegram, Making It Easier To Send Money
Wallets