By analyzing the correlation, such momentum and conclusion can also be drawn with Bitcoin and the USD.Bitcoin has gained in 2020 as the U.S. Dollar Currency Index has been having a tough year.
Bitcoin has to hold the $11,000 support level to avoid a CME gap test at $9,600.
The weekly chart of Bitcoin is showing the significance of the $12,000 resistance level.
While that's not much for enthusiasts in the cryptocurrency markets, it's a large move for the commodity markets.
A breakthrough of the $12,000 barrier should result in a massive move for Bitcoin as well as the first big hurdle is found between $16,500-17,500.
In recent months, the U.S. Dollar Currency Index has been the center of many discussions regarding Bitcoin's movements.
Quite clear, they do move in the opposite ways of each other, resulting in the conclusion that a weaker U.S. Dollar benefits the price of Bitcoin.
The primary example of weaknesses surrounding the U.S. Dollar is found in the reaction of gold since the dot com bubble of 2000.Since the collapse of the markets in that year, the U.S. dollar lost its value, resulting in a rally of 600% on gold in the years after.
Since the recent weakness of the U.S. Dollar resulted in a rally around the commodity markets, this would also benefit any momentum in Bitcoin in the coming years.
The first one is the overall weakness of Ethereum so far in Q4, resulting in the overall weakness of the crypto market.
Will the dollar's weakness result in Bitcoin finally breaking $12,000?
Published on Oct 17, 2020
by Cointele | Published on Coinage
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