• Bitcoin is currently trading in the low $27K range, showing signs of stability and potential for bullish trends.
• Analysts attribute this to a dip in the USD’s value and cautious buyers entering the market.
• Long-term wallets holding coins for at least six months may see BTC prices rise as the DXY weakens.
Bitcoin Gains Technical Stability
Positive signs are emerging for bitcoin on technical charts. The world’s number one digital currency by market cap is holding a key support level that could insinuate bullish trends will again emerge for the asset in the coming weeks and months. With the dip in the dollar’s value, this could be why BTC has endured a small slip.
Alex Kuptsikevich – senior market analyst at FX Pro – said that if buyers come back to the trading scene, bitcoin will need to reach a price of at least $28,500. Ilan Solot – co-head of digital assets at Marex – explained that if currencies take back some Fed easing implied in the futures curve, it could cause some short-term damage to assets like commodities and crypto as well as cause BTC prices to rise.
The Dollar’s Impact
Analysts at Swiss Block Insights also mentioned that depending on how violent the dollar upswing gets, it could negatively affect commodity and cryptocurrency prices while pushing BTC higher due to its inverse relationship with USD.
Cautious Buyers Entering Market
Some believe this is because bitcoin has been largely tied to USD as of late, a sudden and interesting change for the world’s top digital currency. There are many cautious buyers in the mix as of late according to Alex Kuptsikevich– senior market analyst at FX Pro– which may contribute to further growth of bitcoin prices if they decide to enter into trading again.
Long-Term Wallets Holding Coins
Ilan Solot further pointed out that there are many long-term wallets that have held coins for at least a six-month period prior to press time which may prompt an upward trend in BTC prices should these holders choose now or later down line start selling their holdings for profit or other reasons