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An Anticipated Weakening of the Dollar’s Momentum Might Bring Relief Rally for Bitcoin

by Estalontech 2 months ago in startup / tech news / social media / list / interview / how to / history / future / cybersecurity / cryptocurrency
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Some analysis forecasts that the rate at which the dollar is appreciating may slow down significantly

In addition to the Federal Reserve implementation of interest rate hike , the development of the geopolitical situation in Europe also affects the nerves of financial markets including US stocks and cryptocurrency as both felt the effect and slide down while USD dollars appreciated after the news was announced within the same day when Russian President Vladimir Putin officially declared a “partial mobilization”, ordering the states to set up military committees and recruiting reserve troops. Defense Minister Shoigu revealed that 300,000 reserve troops will be called up this time.

Yesterday, in front of the market, it was said that it is not surprising that the Federal Reserve would hike interest rates by 75 basis points, and additional thunder points may arise in both the statement and Powell’s speech. This is very much the situation. The Federal Open Market Committee (FOMC) surprised the market by releasing a hawkish dot plot; policymakers have made it plain that the end point of this cycle of interest rate hikes may be somewhere around 5.0 percent.

Following the news, a number of the world’s most prominent investment banks revised upward their rate projections. In addition to the path of interest rates, the most recent economic forecast indicates the risk of a recession in the United States.

This signals the bank’s determination to control inflation, which means that in order to suppress prices, the Fed is willing to tolerate a significant economic slowdown. In other words, in order to control inflation, the Fed is willing to tolerate a recession in the United States.

Switzerland, Norway, and the Bank of England are just a handful of the major central banks that have begun a cycle of aggressive interest rate hikes in the past few days.

In addition, the Japanese government has made an official announcement regarding the intervention that they will be conducting in the market for foreign exchange.

As a result, the analysis forecasts that the rate at which the dollar is appreciating may slow down significantly. Additionally, the anticipated weakening of the dollar’s momentum may provide some relief for the stock market and cryptocurrency markets.

Even at this late stage, the current price of bitcoin is still in a stronger position when compared to the prior cycle bottoms of the bear market. The price of Bitcoin has been consolidating between $17,500 and $25,000 for the past two months, and it is currently trading at just around $19,200. This places it squarely within its consolidation zone.

In spite of this, the current drop in the value of the digital asset indicates that it is moving closer to the previous bear market cycle. If it continues in this direction, it will reach a low point of $15,000 if it follows this pattern. In addition, the sell-offs have persisted over the course of the past few of weeks, and the digital asset is currently facing a substantial amount of pressure as a result.

In the event that bitcoin is unable to maintain its position above $17,500 and falls below this figure, the cryptocurrency will hit a low of $15,000 prior to the beginning of the bull market.

However, signs imply that this position will lead to a bullish breakout if there is a notable rebound trend that lifts the price of the digital asset above $24,000.,and this can happen within the next 3 days , if all hell break loose concerning the War ,if $BTC breakdown from $17,000 to $15000 then $12000 might come into Play.

Therefore before the closing this week , $19,000 is most critical support before the weekend

#Disclaimer Note : This publication is not intended for use as a source of any financial , money making legal, medical or accounting advice. The information contained in this guide may be subject to laws in the United States and other jurisdictions. We suggest carefully reading the necessary terms of the services/products used before applying it to any activity which is, or may be, regulated. We do not assume any responsibility for what you choose to do with this information. This article is not meant for financial advice , Use with your own judgment.

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Estalontech is an Indie publisher with over 400 Book titles on Amazon KDP. Being a Publisher , it is normal for us to co author and brainstorm on interesting contents for this publication which we will like to share on this platform

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